Robbins LLP informs stockholders that a class action was filed on behalf of all investors who purchased or otherwise acquired Cogent Communications Holdings, Inc. (NASDAQ: CCOI) securities between February 29, 2024 and May 2, 2026. Cogent is one of the largest carriers of internet traffic in the world.
For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.
The Allegations: Robbins LLP is Investigating Allegations that Cogent Communications Holdings, Inc. (CCOI) Made Significant False and Misleading Statements and Omissions to the Detriment of Stockholders
According to the complaint, during the class period, defendants failed to disclose:
- that the vast majority of the purported orders in Cogent’s optical wavelength “backlog” were unlikely to ever result in a paid order;
- that large quantities of the customers in Cogent’s purported optical wavelength “backlog” were unable or unwilling to accept delivery even if Cogent was in a position to provision the wavelength in a timely manner;
- that, as a result of (a)-(b) above, defendants had materially misrepresented customer demand for Cogent’s optical wavelength services and the nature of the Company’s purported “backlog” of wavelength orders;
- that, as a result of (a)-(c) above, Cogent was not on track to achieve its revenue and margin targets and such targets lacked a reasonable basis in objective fact;
- that Cogent did not have the financial capacity or business fundamentals to maintain its long-standing dividend policy; and
- that there was a material, undisclosed risk that defendant Schaeffer would be forced to sell vast quantities of Cogent stock as a result of his high-risk pledging activities, thereby further depressing the price of Cogent stock in the event the truth regarding Cogent’s “backlog,” demand issues, and financial position were ever revealed.
Plaintiff alleges that based on defendants’ false and misleading statements to investors about Cogent’s backlog, customer demand, and the Company’s ability to maintain its dividend policy, Cogent’s stock price reached a class period high of more than $86 per share only to fall to less than $17 per share in the days following the class period’s end, a decline of more than 80%.
What Now: You may be eligible to participate in the class action against Cogent Communications Holdings, Inc. Shareholders who wish to serve as lead plaintiff for the class should contact Robbins LLP. The lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: A recognized leader in shareholder rights litigation, Robbins LLP has helped restore more than $1 billion in value to shareholders, secured some of the largest recoveries in shareholder derivative litigation history, and achieved governance reforms at over 400 Fortune 1000 companies.
"Behind everything we do is the belief that companies should be governed responsibly, fiduciaries should be held accountable, and shareholders deserve transparency and fairness," said Brian J. Robbins, Founding Partner of Robbins LLP.
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