Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $75,000 In Five9 To Contact Him Directly To Discuss Their Options
If you suffered losses exceeding $75,000 in Five9 between June 4, 2024 and August 8, 2024 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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New York, New York--(Newsfile Corp. - December 25, 2024) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Five9, Inc. ("Five9" or the "Company") (NASDAQ: FIVN) and reminds investors of the February 3, 2025 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Five9's net new business was not "strong irrespective of the macro" and was, in fact, hampered by macroeconomic issues such as constrained and scrutinized customer budgets; (2) Five9 was in the midst of a challenging bookings quarter due, in part, to sales execution and efficiency issues, and the Company was not "seeing very strong bookings momentum"; and (3) defendants did not have "enough information in terms of [their] existing customers that are going live" such that the statements that Five9 would see a positive inflection in its dollar-based retention rate lacked a reasonable basis.
On August 8, 2024, after market hours, Five9 released its second quarter 2024 financial results and held an earnings call that same day, whereby the Company cut its annual revenue guidance due to a "challenging bookings quarter" and "uncertain economic conditions." Five9 disclosed that customer budgets had been "constrained and scrutinized" and that "Q2 new logo bookings came in softer than expected[.]" The Company also reported that sales execution "wasn't up to snuff" and announced remedial action to address sales execution and efficiency issues. As a result, Five9 announced that it was "no longer assuming" a dollar-based retention rate inflection in the second half of the year.
On this news, Five9's stock price fell $11.25 per share, or 26.49%, to close at $31.22 per share on August 9, 2024.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Five9's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/234570
