Lawsuit filed for Investors in shares of Fastly, Inc. (NYSE: FSLY)

An investor, who purchased shares of Fastly, Inc. (NYSE: FSLY), filed a lawsuit over alleged violations of Federal Securities Laws by Fastly, Inc..

Investors who purchased shares of Fastly, Inc. (NYSE: FSLY) have certain options and for certain investors are short and strict deadlines running. Deadline: October 26, 2020. NYSE: FSLY investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

San Francisco, CA based Fastly, Inc. operates an edge cloud platform for processing, serving, and securing its customer's applications. On August 5, 2020 after market close, Fastly, Inc held its second quarter (“Q2”) 2020 earnings conference call. During the call, Fastly, Inc disclosed that ByteDance, the Chinese company that operates the wildly popular mobile app TikTok, was Fastly’s largest customer in Q2 2020, and that TikTok represented about 12% of Fastly’s revenue for the six months ended June 30, 2020.
This news shocked the market, as TikTok had been under heavy scrutiny by U.S. officials and others since at least late 2019 due to fears that the data it collects from its users could be accessed by the Chinese government. Indeed, on July 31, 2020, President Trump announced a plan to ban TikTok in the U.S. over national security concerns. As Fastly’s Chief Executive Officer admitted on the Q2 2020 earnings call, “any ban of the TikTok app by the US 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 August 6, 2020, President Trump issued an executive order effectively banning TikTok.

Shares of Fastly, Inc. (NYSE: FSLY) declined from $116.28 per share on August 4, 2020, to as low as $72.55 per share on August 11, 2020.

The plaintiff claims that between May 6, 2020 and August 5, 2020, the Defendants made false and/or misleading statements and/or failed to disclose that Fastly’s largest customer was ByteDance, operator of TikTok, which was known to have serious security risks and was under intense scrutiny by U.S. officials, that 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, and that, as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

Those who purchased shares of Fastly, Inc. (NYSE: FSLY) have certain options and should contact the Shareholders Foundation.

Media Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.