Step 1
Unite with Fellow Investors
Step 2
Choose the Best Attorney
Step 3
Provide Documents
Step 4
Follow Case Progress
Step 5
Get Payout
FIVN.US
id: 1419
Five9 (FIVN) Revenue Guidance Misrepresentation Case
N.D. California
Court3:24-cv-08725
Case number06/04/2024
Class period Start08/08/2024
Class period End02/03/2025
Lead Plaintiff motion deadline- $FIVN investors filed a lawsuit against Five9 for misleading them about its sales growth and customer demand outlook.
- On August 8, 2024, Five9 lowered its revenue forecast due to weak bookings and sales challenges. Following this news, $FIVN stock dropped by over 26%.
Case Details:
Between June 4, 2024, and August 8, 2024, Five9 repeatedly assured investors of "strong momentum" in new business bookings and reliable visibility into customer demand.
During a June 4, 2024 investor conference, Five9’s executives claimed they were "knocking down some of the largest enterprise brands" and expected higher retention rates in the year's second half based on customer data.
On August 8, 2024, Five9 revealed a tough bookings quarter caused by tight customer budgets and poor sales execution.
The company admitted its sales team underperformed and announced corrective actions, while scrapping its earlier forecast for improved customer retention rates.
This revelation caused $FIVN to drop over 26%.
Based on these events, $FIVN investors filed a lawsuit against Five9, accusing the company of the following:
- It misled investors about the strength of its sales momentum and bookings.
- It overstated its visibility into customer demand and retention rates.
Investors believe Five9 misrepresented its business outlook and overstated his visibility.
Case Status
Lead Plaintiff Submission
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
08/09/2024
Filing date
12/04/2024
Lead Plaintiff Deadline
02/03/2025
Judge
Casey Pitts