The legal complaint targets a timeline between February 29, 2024, and May 1, 2026, during which Cogent allegedly promoted a robust optical wavelength backlog tied to the former Sprint wireline network. Plaintiffs contend that while management repeatedly touted thousands of potential opportunities and strong demand, they failed to disclose that chronic provisioning delays and customer attrition were preventing these orders from converting into sustainable revenue. This disconnect became financially acute when the company eventually reported a 90% loss of its backlog and a 98% dividend cut.

The volatility surrounding the company’s stock was further compounded by governance concerns. In August 2025, lenders seized and sold $82.5 million of Cogent stock following a margin call involving the company’s chief executive. By the end of the class period, shares had plummeted from a high of over $86 in November 2024 to less than $17 per share. Investors who purchased securities during this window have until September 21, 2026, to apply for lead plaintiff status in the case, which is currently pending in the United States District Court for the District of Columbia.