Cogent Communications hit with class action over alleged inflated backlog

A securities fraud class action has been filed against Cogent Communications Holdings, Inc. on behalf of investors who purchased or acquired Cogent common stock between February 29, 2024 and May 1, 2026. The complaint alleges Cogent misrepresented customer demand for its optical wavelength services and the nature of its purported backlog of wavelength orders, including that many backlog orders were unlikely to become paid orders and that numerous customers were unable or unwilling to accept delivery. It also alleges the company was not on track to meet revenue and margin targets, lacked the financial capacity to maintain its long-standing dividend policy, and faced an undisclosed risk that David Schaeffer could be forced to sell large amounts of Cogent stock because of pledging activities. The suit says Cogent disclosed further wavelength underperformance and customer acceptance delays on May 4, 2026, after which the stock fell $6.79, or 29%, to close at $16.37.