Fastly Class-Action Lawsuit: 13 Things for FSLY Stock Investors to Know

Fastly (NYSE:FSLY), a U.S. cloud computing company, is facing a class-action lawsuit over its ties to TikTok.

A magnifying glass zooms in on the Fastly (FSLY) website.
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Here’s what investors need to about the class-action lawsuit against Fastly.

  • The lawsuit comes after the revelation that ByteDance, the owner of TikTok, was one of its largest customers.
  • This was revealed during its second-quarter earnings call.
  • The company also noted that TikTok was responsible for 12% of its total revenue in the last six months.
  • Following this news, Fastly saw its stock drop by 17.7% from its previous close.
  • This lawsuit alleges that Fastly made misleading statements or failed to disclose ByteDance was its largest customer.
  • The reason behind the negative reaction to this was likely increasing scrutiny of the TikTok app.
  • It also claims that Fastly didn’t inform investors about the possible dangers of actions against ByteDance or TikTok from the U.S. Government.
  • Finally, the class-action lawsuit alleges that this resulted in misleading statements from Fastly concerning its positive business and operations.
  • The lawsuit claims that this has the company violating the Securities Exchange Act of 1934.
  • It affects anyone that bought or acquired Fastly securities from May 6, 2020, to August 5, 2020.
  • Law firms are seeking a lead plaintiff for the class-action lawsuit against FSLY.
  • Plaintiffs have until Oct. 26 to step up as a lead plaintiff in the case.
  • Otherwise, they will continue to remain as an absent class member.

FSLY stock was up 14% as of Wednesday afternoon.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.


Article printed from InvestorPlace Media, https://investorplace.com/2020/10/fastly-class-action-lawsuit/.

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