The PRNewswire notice cites a federal securities lawsuit alleging Five9 misled investors about macro-related demand pressure, weak bookings momentum and the basis for expected retention-rate improvement.
Kuehn Law, PLLC said it is investigating whether certain officers and directors of Five9, Inc. breached their fiduciary duties to shareholders. The notice points to a federal securities lawsuit alleging insiders caused the company to misrepresent or omit that Five9's net new business was not "strong irrespective of the macro" and was being hurt by constrained and scrutinized customer budgets, that the company was facing a difficult bookings quarter tied in part to sales execution and efficiency issues rather than "very strong bookings momentum," and that statements forecasting a positive inflection in dollar-based retention rate lacked a reasonable basis because insiders did not have enough information about existing customers going live. The firm is seeking to hear from shareholders who currently own FIVN and bought shares before February 21, 2024.