Investors Target Cogent Communications Over Alleged Wavelength Backlog Claims

The complaint filed by Hagens Berman Sobol Shapiro LLP alleges that Cogent promoted an optical wavelength backlog as a key indicator of future revenue, despite the metric being largely illusory. According to the filing, many orders within this backlog were unlikely to ever convert into revenue, as customers were either unwilling or unable to accept delivery. The firm contends that management materially misrepresented the true nature of customer demand.

Signs of trouble surfaced throughout the class period as market confidence eroded. Following a 20% sequential decline in backlog reported in early 2025 and the subsequent removal of 1,500 aged orders, the company eventually ceased providing backlog data altogether in February 2026. By May 2026, leadership conceded that customers were pushing out their acceptance of installations, further fueling investor concerns. Reed Kathrein, the partner leading the investigation, stated the firm is examining whether Cogent intentionally promoted these figures to misrepresent the company’s actual ability to generate earnings. Investors seeking to participate as a lead plaintiff must submit their claims by September 21, 2026.