San Francisco – September 10, 2026 -- Hagens Berman Sobol Shapiro LLP has filed a securities class action against Cogent Communications Holdings (NASDAQ: CCOI), alleging the company misrepresented its optical wavelength "backlog" as a reliable indicator of revenue growth between February 29, 2024 and May 1, 2026.
Lawsuit targets Cogent's wavelength backlog disclosures as misleading investors
The complaint alleges Cogent's wavelength backlog was largely illusory, with customers unable or unwilling to accept delivery even when the company could provision the wavelengths. Plaintiffs claim this misrepresented actual customer demand and inflated the company's growth narrative.
Cogent's Q4 2024 results first revealed a 20% sequential backlog decline
On February 27, 2025, Cogent reported disappointing fourth-quarter and full-year 2024 results, disclosing a 20% sequential drop in backlog and the removal of 1,500 orders, many over a year old. The stock fell sharply on the disclosure.
Management admitted installation capacity exceeded ready orders in Q1 2025
On May 8, 2025, Cogent reported weaker-than-expected first-quarter 2025 results, with executives acknowledging the company had built "a funnel of wavelength opportunities with no defined installation window" that largely failed to convert. Shares reacted similarly to the February decline.
Cogent stopped disclosing backlog data entirely in February 2026
The company ceased reporting backlog figures altogether on February 20, 2026, when it announced fourth-quarter and full-year 2025 results, triggering another steep share-price drop.
Customers continued rejecting provisioned wavelengths through Q1 2026
On May 4, 2026, Cogent's first-quarter 2026 results again missed on wavelength revenue and customer connections. Management said customers "pushed out their acceptance" of wavelengths despite the company provisioning more units than in the prior quarter.
Hagens Berman partner questions intent behind backlog reporting
Reed Kathrein, the Hagens Berman partner leading the investigation, said the firm is examining whether Cogent and its management intentionally used wavelength backlog and funnel metrics to misrepresent both the company's ability to convert them to revenue and actual customer-centric demand.
The lead plaintiff deadline for the case is September 21, 2026.