Cogent Communications Faces Class Action Over Wavelength Backlog Claims

The lawsuit, filed by Levi & Korsinsky, LLP, targets the period between February 29, 2024, and May 1, 2026. According to the complaint, Cogent consistently touted a strong demand for its optical wavelength services following the acquisition of Sprint’s wireline business. These representations allegedly misled investors by suggesting that thousands of orders represented meaningful future income.

However, the filing contends that up to 90% of the cited backlog was expected to fail or never materialize into active customers. Plaintiffs claim the company suffered from significant network reconfiguration delays and provisioning issues, rendering the backlog reports illusory. Following disclosures regarding these shortcomings, CCOI shares dropped by approximately 80%, or $69.00 per share. Investors who purchased securities during the defined class period and sustained losses are eligible to seek recovery by contacting the firm before the September deadline.