Five9 Investors Urged to Join Class Action Ahead of Deadline

Five9 Class Action Reminder for Investors

DEADLINE ALERT: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors

Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson urges investors who have sustained losses exceeding $75,000 in Five9 to reach out directly for a discussion about their legal options.

If you have incurred losses surpassing $75,000 in Five9 between June 4 and August 8, 2024, contact Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310) to learn about your rights.

Faruqi & Faruqi, LLP is currently investigating potential claims against Five9, Inc. (NASDAQ: FIVN) and wants to remind investors of the February 3, 2025, deadline for seeking the role of lead plaintiff in a federal securities class action filed against the company.

About Faruqi & Faruqi, LLP

Faruqi & Faruqi is a well-known national securities law firm with offices located across several states. Since its establishment in 1995, the firm has successfully recovered hundreds of millions of dollars for distressed investors. The firm has a strong reputation for representing clients in securities class actions and other litigation matters tailored to protect shareholders.

Understanding the Class Action Lawsuit

Investors must be aware that the court appoints a lead plaintiff as the person with the largest financial stake in the outcome of the class action who is typical of other class members. This individual oversees litigation on behalf of the class. Members of the proposed class can motion to serve as lead plaintiff via their counsel or choose not to take any action, remaining absent from the class while still being eligible for any recovery. Your decision to act or remain passive will not affect your ability to share in any future awards.

The Allegations Against Five9

The recent complaint alleges that Five9 and its upper management breached federal securities laws by misleading investors and failing to disclose critical information regarding the company’s performance. Specifically, claims suggest that Five9's new business strength was overstated and hindered by ongoing macroeconomic challenges, including stringent customer budgets. Moreover, the report indicates Five9 was grappling with serious sales execution issues leading to disappointing quarterly results.

Impact of the Financial Report

On August 8, 2024, following the release of its second-quarter financial results, Five9 adjusted its annual revenue forecast downward. This adjustment was attributed to what the company termed a "challenging bookings quarter" amidst unstable economic conditions. Five9 admitted to constrained customer budgets affecting its performance and acknowledged that sales execution strategies were inadequate at that time. Consequently, it announced that its expected dollar-based retention rate was no longer anticipated to improve in the latter half of the year.

This news had immediate ramifications for Five9's stock price, which plummeted by $11.25, a staggering 26.49% decrease, closing at $31.22 the following day, underscoring the negative impact on investor confidence.

Encouragement for Whistleblowers and Investors

Faruqi & Faruqi, LLP invites anyone with pertinent information regarding Five9's actions to come forward. This call extends to whistleblowers, previous employees, shareholders, and various stakeholders to provide insights that may assist in the ongoing investigation.

For More Information

To learn more about the Five9 class action, please visit the official Faruqi & Faruqi website or contact partner Josh Wilson directly at the numbers provided above.

Stay updated on the latest developments by following Faruqi & Faruqi on LinkedIn, X, or Facebook.

Frequently Asked Questions

What is the purpose of the class action lawsuit against Five9?

The lawsuit seeks to address alleged securities law violations by Five9, where investors may have been misled about the company’s performance and financial estimates.

Who can participate in this class action?

Any investor who experienced financial losses over $75,000 in their Five9 investments during the specified period may be eligible to participate in the lawsuit.

What is the deadline for filing the lead plaintiff motion?

The deadline to seek the role of lead plaintiff in the class action is February 3, 2025.

How can I get in contact with Faruqi & Faruqi regarding this lawsuit?

You can reach out to partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

What happens if I do not want to serve as lead plaintiff?

If you choose not to serve as lead plaintiff, you can still participate as a member of the class and benefit from any potential recovery resulting from the lawsuit.

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