The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Five9, Inc. (FIVN) Investors

Business Wire 16-Dec-2024 12:05 PM

The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Five9, Inc. ("Five9" or the "Company") (NASDAQ: FIVN) securities between June 4, 2024 and August 8, 2024, inclusive (the "Class Period"). Five9 investors have until February 3, 2025 to file a lead plaintiff motion.

If you are a shareholder who suffered a loss, click here to participate.

On August 8, 2024, Five9 released its second quarter 2024 financial results, disclosing that it would cut its annual revenue guidance due to a "challenging bookings quarter" and "uncertain economic conditions." Additionally, the Company revealed that customer budgets had been "constrained and scrutinized," that "Q2 new logo bookings came in softer than expected," and that sales execution "wasn't up to snuff," announcing that the Company 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, or 26.5%, to close at $31.22 per share on August 9, 2024, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors 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"; (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; and (4) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

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If you purchased Five9 securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

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