Overview

A class action lawsuit has been filed against Five9, Inc. (“Five9” or the “Company”) (NASDAQ: FIVN) and certain of the Company’s former senior executive officers alleging violations of the federal securities laws.  The Five9 class action lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired Five9 securities, including call options, between June 4, 2024, through the close of trading on August 8, 2024, both dates inclusive (the “Class Period”).  Investors have until February 3, 2025, to seek appointment as lead plaintiff in the Five9 class action lawsuit.

Five9 provides software for a cloud-based contact center.  The Company’s solutions are designed to enable Five9’s clients to manage customer interactions through various channels, including voice, email, chat, and social media.  The Company predominately generates revenue through subscriptions, primarily based on the number of named agents allowed to concurrently access Five9’s solutions, usage, access to functionalities and applications, and professional services.

The Five9 class action lawsuit concerns Defendants’ misrepresentations regarding the purported strength of the Company’s new net business bookings and visibility into its installed customer base.  During the Class Period, Five9 stated its “net new business” experienced “very strong bookings momentum,” was “knocking down some of the largest enterprise brands,” and was “strong irrespective of the macro” environment.  Five9 also touted its visibility into its installed customers base, representing that the Company had “enough information in terms of our existing customers that are going live” such that Five9 would experience a positive inflection in its dollar-based retention rate (“DBRR”) in the second half of the year.

In truth, when these statements were made, Five9 was in the throes of a challenging bookings quarter due to constrained and scrutinized customer budgets and sales execution issues, forcing the Company to cut its annual revenue guidance and take remedial action to address sales execution issues.  Defendants also lacked sufficient visibility in their customer base such that Five9’s statements with respect to the positive inflection in DBRR lacked a reasonable basis.

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If you purchased or otherwise acquired Five9 securities, including call options, between June 4, 2024, through the close of trading on August 8, 2024, both dates inclusive, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at [email protected]. 

The deadline to apply to the Court to serve as lead plaintiff in the Five9 class action lawsuit is February 3, 2025.