Five9 Faces Class Action Lawsuit Over Securities Misstatements
San Ramon, Wednesday, 15 January 2025.
Five9, Inc. is embroiled in a class action lawsuit involving investors who allege the company made false statements about its financial performance, leading to significant investment losses.
Legal Action Details
Multiple law firms have initiated legal proceedings against Five9, Inc. (NASDAQ: FIVN) on behalf of investors who purchased securities between June 4, 2024, and August 8, 2024 [1][2][3]. The lawsuit, filed in the United States District Court for the Northern District of California, specifically targets investors who suffered losses exceeding $100,000 [1]. The deadline for affected investors to file as lead plaintiff is set for February 3, 2025 [1][2][3][4].
Core Allegations
The legal action centers on allegations that Five9 and its executives failed to disclose material information during the specified period [1]. According to the lawsuit, the company made misleading statements about its business strength and downplayed significant challenges [2][3]. On August 8, 2024, Five9 revealed disappointing second-quarter results and reduced its annual revenue guidance, citing ‘constrained and scrutinized’ customer budgets and uncertain economic conditions [1]. This news caused the company’s stock price to plummet by more than 26%, falling from $42.47 to $31.22 per share on August 9, 2024 [1].
Legal Representation and Investor Options
Several prominent law firms, including Kahn Swick & Foti, LLC, Bronstein, Gewirtz & Grossman, LLC, and Levi & Korsinsky, LLP, are representing affected investors [1][2][3]. Investors who purchased Five9 securities, including call options, during the Class Period can participate in the lawsuit without upfront costs through contingency fee arrangements [3][4]. The case, formally known as Lucid Alternative Fund, LP v. Five9, Inc., et al., No. 24-cv-8725, is currently pending [1].