Investors Face September Deadline in Cogent Communications Lawsuit

The legal action, spearheaded by Hagens Berman Sobol Shapiro LLP, centers on allegations that Cogent misrepresented the conversion rate of its wavelength backlog into recognizable revenue. Plaintiffs contend that the backlog was largely illusory, as many listed customers remained unable or unwilling to accept delivery of services despite the company’s public assurances of demand.

Signs of instability within the company’s reporting surfaced in February 2025, when Cogent removed 1,500 orders from its records, citing their age. This move triggered a sharp decline in share price, a pattern that repeated throughout 2025 and 2026 as revenue targets were missed. By February 2026, the firm abruptly stopped disclosing backlog data entirely, further damaging investor confidence.

Reed Kathrein, a partner at Hagens Berman, stated that the investigation is focused on whether management intentionally promoted these metrics to inflate the appearance of company-centric demand. The firm is currently seeking individuals with substantial losses or non-public information to assist in the proceedings.