GlobeNewswire Inc | Sep 1, 2020 07:00PM EDT

September 01, 2020

NEW YORK, Sept. 01, 2020 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP reminds investors that a class action lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of those who acquiredFastly, Inc. (Fastly or the Company) (NYSE: FSLY) securities during the period from May 6, 2020 through August 5, 2020 (the Class Period). Investors have until October 26, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.

On August 5, 2020, Fastly held its second quarter (Q2) 2020 earnings conference call. During the call, defendants disclosed that ByteDance, the Chinese company that operates the wildly popular mobile app TikTok, was Fastlys largest customer in Q2 2020, and that TikTok represented about 12% of Fastlys 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. On July 31, 2020, President Trump announced a plan to ban TikTok in the U.S. over national security concerns. As Fastlys 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 customers traffic would have an impact on our business. On this news, Fastlys share price fell $19.28, or approximately 17.7%, from the previous trading days closing price of $108.92, to close at $89.64 on August 6, 2020.

Fastlys share price continued to decline on August 6, 2020, when President Trump issued an executive order effectively banning TikTok, dropping another $10.31 per share from the closing price on August 6, 2020, or approximately 11.5%, to close at $79.33 on August 7, 2020.

The complaint alleges that during the Class Period defendants knowingly and/or recklessly made false and/or misleading statements about the Companys business, operations, and prospects. Specifically, defendants made false and/or misleading statements and/or failed to disclose: (1) that Fastlys largest customer was ByteDance, operator of TikTok, which was known to have serious security risks and was under intense scrutiny by U.S. officials; (2) that there was a material risk that Fastlys business would be adversely impacted should any adverse actions be taken against ByteDance or TikTok by the U.S. government; and (3) that, as a result, defendants positive statements about the Companys business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

If you acquired Fastly securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney at 212-371-6600, by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.

Kirby McInerney is a New York-based plaintiffs law firm concentrating in securities, antitrust, and whistleblower litigation. The firms efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerneys website: www.kmllp.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Contacts

Kirby McInerney LLPThomas W. Elrod, Esq., (212) 371-6600investigations@kmllp.comwww.kmllp.com