Fastly, Inc.

Registration Deadline:

07/23/2024

A securities class action has been filed in the USDC N.D.CA. against Fastly, Inc. (FSLY) (“Fastly” or the “Company”), on behalf of all persons or entities that purchased or otherwise acquired Fastly securities between February 15, 2024 and May 1, 2024, both dates inclusive (the “Class Period”).

 

Fastly operates an edge cloud platform for processing, serving, and securing customer’s applications. The edge cloud is a category of Infrastructure-as-a-Service (“IaaS”) that purportedly enables developers to build, secure, and deliver digital experiences. Fastly’s platform includes a Content Delivery Network (“CDN”), or a geographically distributed network of proxy servers and their data centers. Content owners such as media companies and e-commerce vendors pay CDN operators to deliver their content to their end users. Certain companies have adopted a “Multi-CDN” framework which combines multiple CDNs from various providers into one large global network.

 

The claim arises on May 1, 2024, during after-market hours, when Fastly issued a press release announcing the Company’s Q1 2024 financial results. The Company lowered its FY 2024 revenue guidance to a range of $555 million to $565 million, significantly below its previously issued FY 2024 revenue guidance of $580 million to $590 million, and below consensus estimates of $584.62 million for the same period.

 

The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that:

(1) contrary to its representations to investors, Fastly was in fact experiencing a significant deceleration in growth among its largest customers and was losing the increased market share it had gained as a result of the 2023 CDN consolidation trend;

(2) the foregoing issues were likely to have a material negative impact on the Company’s revenue growth;

(3) accordingly, the Company was unlikely to meet its own previously issued revenue guidance for FY 2024;

(4) as a result, the Company’s financial position and/or prospects were overstated; and

(5) as a result, the Company’s public statements were materially false and misleading at all relevant times.

As a result, Fastly’s stock price fell $4.14 per share, or 32.02%, to close at $8.79 per share on May 2, 2024, thereby harming investors.

 

If you purchased Fastly securities during the class period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.

 

About Lowey Dannenberg

Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has previously recovered billions of dollars on behalf of investors.

If you suffered a loss on your investments or would like to inquire about joining an action to recover your loss under the federal securities laws, please complete the form below.

An attorney will contact you at no cost to provide you information about joining the action and answer your questions. Please note that submission of this form does not by itself form an attorney-client relationship nor does filing out this form mean you have joined any lawsuit.