Investors File Class Action Against Cogent Communications Over Backlog Claims

The lawsuit covers investors who acquired Cogent common stock between February 29, 2024, and May 1, 2026. According to the complaint filed by Hagens Berman Sobol Shapiro LLP, the company’s internal metrics misrepresented true customer demand. Plaintiffs argue that a significant portion of the reported backlog consisted of orders from customers either unable or unwilling to accept delivery, rendering the data illusory.

Market volatility followed a series of disclosures that undermined the company's narrative. Beginning in February 2025, Cogent reported a 20% sequential decline in backlog and removed 1,500 stale orders. Subsequent quarters brought further disappointments, culminating in the company’s decision to stop reporting backlog data entirely in February 2026. By May 2026, management acknowledged that customers were pushing back on wavelength installations, leading to further stock price erosion. Reed Kathrein, the Hagens Berman partner leading the investigation, stated the firm is examining whether leadership intentionally promoted these figures to inflate revenue expectations. The court has set a lead plaintiff deadline of September 21, 2026.