Investors File Class Action Against Cogent Over Wavelength Backlog Claims

The litigation targets Cogent’s disclosures between February 29, 2024, and May 1, 2026, centering on the company’s insistence that its wavelength backlog served as a reliable indicator of future revenue growth. According to the complaint filed by Hagens Berman Sobol Shapiro LLP, these figures were largely illusory, as a significant portion of the backlog consisted of customers either unable or unwilling to accept delivery of services.

Signs of trouble surfaced on February 27, 2025, when Cogent reported a 20% sequential drop in its backlog and disclosed the removal of 1,500 orders that had remained stagnant for over a year. Subsequent quarterly reports revealed a persistent gap between installation capacity and actual customer demand. By February 20, 2026, the company abruptly stopped reporting backlog data entirely—a move that further rattled investors and depressed share prices.

Reed Kathrein, the Hagens Berman partner leading the investigation, stated the firm is examining whether management intentionally promoted the backlog and sales funnel to misrepresent the company’s ability to convert potential opportunities into earned revenue. Investors who purchased shares during the class period and suffered substantial losses are now being encouraged to join the legal action before the September 21, 2026 deadline.