The lawsuit, spearheaded by the firm Hagens Berman Sobol Shapiro LLP, covers the period from February 29, 2024, to May 1, 2026. At the center of the dispute are Cogent's claims that its wavelength backlog served as a reliable indicator of future performance. The complaint alleges that this data was largely illusory, as many customers lacked the intent or capacity to accept delivery, leading to a disconnect between reported figures and actual revenue conversion.
Investors Face September Deadline in Cogent Communications Class Action
Investors in Cogent Communications Holdings have until September 21, 2026, to serve as lead plaintiffs in a securities class action lawsuit. The litigation targets alleged misrepresentations regarding the company's optical wavelength backlog, a metric that plaintiffs claim was used to inflate expectations of revenue growth and overall market demand.
Market volatility followed a series of disclosures that undermined confidence in the company's growth narrative. In February 2025, Cogent removed 1,500 orders from its backlog, triggering a sharp decline in share price. Subsequent reports throughout 2025 and 2026 revealed that the company faced installation capacity issues and customer delays, ultimately prompting management to cease reporting backlog data entirely in February 2026. Reed Kathrein, a partner at Hagens Berman, stated the investigation focuses on whether management intentionally promoted these metrics to misrepresent the company's ability to generate revenue. Investors who sustained losses during the class period are encouraged to contact the firm to participate in the proceedings.
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