Investors Face September 21 Deadline in Cogent Communications Lawsuit

The legal action, led by Hagens Berman Sobol Shapiro LLP, covers the period between February 29, 2024, and May 1, 2026. At the core of the complaint is the claim that Cogent’s touted wavelength backlog was largely illusory. Prosecutors argue that the company presented this backlog as a reliable indicator of future growth, despite knowing that many customers were either unwilling or unable to accept delivery of the services.

Evidence of the disconnect between company claims and actual performance surfaced repeatedly over the class period. In February 2025, Cogent revealed a 20% sequential decline in its backlog, citing the removal of 1,500 stale orders. Subsequent quarterly reports in 2025 and 2026 showed further disappointments in wavelength revenue and customer connections. By February 2026, Cogent abruptly ceased public reporting of its backlog data, a move that triggered additional drops in share price.

"We're focused on whether Cogent and its management intentionally promoted wavelength backlog and funnel as a way to misrepresent both the company's actual ability to convert them to earned revenues and the real company-centric wavelength demand," said Reed Kathrein, a partner at Hagens Berman. Investors who suffered losses during the specified timeframe are encouraged to contact the firm to participate in the ongoing litigation.