I am using Nodemon with Forever Module on Ubuntu Server.
I use this command to start my Node Server:
forever start -c nodemon app.js --exitcrash
If you have large number of users most probably you are hitting systems maximum number of requests queued to listen socket. If you are sure your server can handle the load you can increase from default 128 to something 1024.
And yes, increase the ulimit, so system can handle more load, but don't set to unlimited, just check what is enough to handle current load.
Also go through this Increasing the maximum number of tcp/ip connections in linux will get some helpful info too