Investors Face September Deadline in Cogent Communications Class Action

The lawsuit, filed by Hagens Berman Sobol Shapiro LLP, covers the period between February 29, 2024, and May 1, 2026. Plaintiffs allege that Cogent touted its wavelength backlog as a key growth indicator while knowing that many of the orders were unlikely to convert into actual revenue. According to the complaint, the company misrepresented customer demand and the nature of these service contracts, leading to significant financial losses when the discrepancy between the backlog and actual performance became apparent.

Market confidence began to erode in early 2025. On February 27, 2025, Cogent revealed a 20% sequential decline in its backlog and admitted to removing 1,500 orders that were over a year old. Subsequent disclosures in 2025 and 2026 further damaged the stock price, as management acknowledged that customers were frequently pushing back or failing to accept wavelength installations. By February 2026, the company abruptly stopped reporting backlog data entirely.

Reed Kathrein, a partner at Hagens Berman, noted that the investigation focuses on whether management intentionally used the backlog and funnel metrics to misrepresent the company's ability to generate earnings. As the litigation proceeds, the firm is encouraging investors who suffered substantial losses during the class period to submit their claims before the September deadline. The case remains a focal point for those questioning the transparency of Cogent’s previous financial disclosures.