Class Action Sued Cogent Communications Over Misleading Backlog Claims

SAN DIEGO, Sept. 11, 2026 /CourierPR/ -- Robbins LLP has reminded investors that a securities class action lawsuit has been filed against Cogent Communications Holdings, Inc. (CCOI), a global provider of internet access and private network services. The lawsuit, which covers the period from February 29, 2024, to May 1, 2026, alleges that Cogent and certain senior executives made materially false or misleading statements about the company's optical wavelength business.

According to the complaint, Cogent failed to disclose that the vast majority of the purported orders in its optical wavelength "backlog" were unlikely to result in paid orders. Additionally, the company did not inform investors that large quantities of customers in the backlog were unable or unwilling to accept delivery even if Cogent could provision the wavelengths. These omissions, the lawsuit claims, led to a significant misrepresentation of customer demand and the nature of the company's backlog, ultimately causing Cogent to miss its revenue and margin targets.

The decline in Cogent's stock price can be traced back to several key events. On February 27, 2025, Cogent reported a decline in its wavelength backlog, which caused its stock to fall by approximately 10%. In May 2025, the company disclosed that it expected to install only about 5% of its backlog per month, leading to a 7% drop in its stock price. Following weak second-quarter results and higher leverage, Cogent's stock fell by 19% and then 13% in August 2025, compounded by lenders seizing and selling approximately $82.5 million of CEO David Schaeffer's pledged shares. In November 2025, Cogent slashed its quarterly dividend by 98%, ending a 52-consecutive-quarter streak, causing the stock to decline from $38.30 to $16.68, a 56% drop. Finally, in February 2026, Cogent refused to provide a specific backlog figure, leading to a 29% drop in its stock price.

The complaint further alleges 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 CEO Schaeffer would be forced to sell vast quantities of Cogent stock due to his high-risk share-pledging activities. This risk, if revealed, could further depress the stock price.

Investors who purchased or acquired Cogent common stock during the Class Period and suffered significant losses may be eligible to participate in the class action and seek appointment as lead plaintiff. The deadline to seek appointment as lead plaintiff is September 21, 2026. Shareholders who wish to serve as lead plaintiff must submit their papers to the court by this date. The lead plaintiff will act on behalf of other class members in directing the litigation. Investors are encouraged to contact attorney Aaron Dumas, Jr., at (800) 350-6003 for more information.