Fastly Stock: Berger Montague Investigates Alleged Securities Fraud Claims Against Fastly, Inc. (NYSE: FSLY); Lead Plaintiff Deadline is October 26, 2020
PHILADELPHIA, Sept. 22, 2020 – Berger Montague is investigating potential securities fraud claims against Fastly, Inc. (“Fastly” or the “Company”) on behalf of investors who purchased Fastly securities (NYSE: FSLY) between May 6, 2020 and August 5, 2020 (the “Class Period”).
If you purchased Fastly securities during the Class Period, have questions concerning your rights or interests, or would like to discuss Berger Montague’s investigation, please contact attorneys Andrew Abramowitz at firstname.lastname@example.org or (215) 875-3015, or Donnell Much at email@example.com or (215) 875-4667, or contact us at www.bergermontague.com/fastly.
The lawsuit alleges that Fastly, a provider of an edge cloud platform, failed to alert investors to the fact that its largest customer was ByteDance, operator of TikTok, which was the subject of intense regulatory scrutiny regarding potential security risks. Thus, there was a material risk that Fastly’s business would be adversely impacted should any adverse actions be taken against ByteDance or TikTok by the U.S. government.
On August 5, 2020, during Fastly’s Q2 2020 earnings call, Defendants disclosed that ByteDance represented approximately 12% of Fastly’s revenue for the six months ended June 30, 2020. This was deeply troubling to investors, given that only days earlier, on July 31, 2020, President Trump announced a plan to ban TikTok in the U.S. Fastly’s Chief Executive Officer stated on the earnings call that “any ban of the TikTok app by the U.S. would create uncertainty around our ability to support this customer[,]” and “the loss of this customer’s traffic would have an impact on our business.”
On this news, Fastly’s share price fell $19.28 per share – more than 17% – from the previous trading day’s closing price of $108.92 per share to a closing price of $89.64 per share on August 6, 2020.
Fastly’s shares continued to decline on August 6, 2020, when President Trump issued an executive order effectively banning TikTok, declining another $10.31 per share, or 11%, on August 7, 2020.
If you purchased Fastly shares during the Class Period, you may seek Court appointment as lead plaintiff to represent other injured investors in a class action. The lead plaintiff appointment deadline is October 26, 2020. You do not need to be a lead plaintiff to share in any potential Class recovery.
Whistleblowers: Persons with non-public information regarding Fastly, Inc. are encouraged to confidentially assist Berger Montague’s investigation or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of recoveries obtained by the SEC. For more information, contact us.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for five decades and serves as lead counsel in courts throughout the United States.