Rosen Law Firm Urges Cogent Communications Investors to Act Quickly
News related to:Cogent Communications Holdings, Inc · 2 min read
Rosen Law Firm, a global investor rights law firm, has issued a deadline notice to investors in Cogent Communications Holdings, Inc. (NASDAQ: CCOI). The notice encourages investors who purchased Cogent Communications common stock between February 29, 2024, and May 1, 2026, inclusive, to secure legal counsel before a critical September 21, 2026, deadline.
According to the lawsuit, Cogent Communications has been accused of making materially false and misleading statements regarding its customer demand for optical wavelength services and the nature of its purported "backlog" of wavelength orders. The lawsuit claims that the majority of the purported orders were unlikely to result in paid orders, and many customers in the backlog were unable or unwilling to accept delivery even if Cogent was capable of provisioning the wavelength in a timely manner.
Rosen Law Firm argues that these misleading statements have led to a misrepresentation of Cogent's financial health and revenue targets. The firm further states that Cogent did not have the financial capacity or business fundamentals to maintain its long-standing dividend policy, and there was a material, undisclosed risk that Cogent's former CEO, David Schaeffer, would be forced to sell vast quantities of Cogent stock due to his high-risk pledging activities.
The lawsuit alleges that when the true details entered the market, it caused significant damage to investors. The class period for this lawsuit is defined as all investors who purchased Cogent Communications common stock during the specified time frame. Investors are encouraged to take action to join the class action to potentially recover their losses.
The Rosen Law Firm has a track record of success in leadership roles, having secured the largest settlement in a securities class action against a Chinese company and ranking first in securities class action settlements in 2017. The firm has recovered billions of dollars for investors and secured over $438 million in settlements in 2019 alone.
Investors are reminded that no Class has been certified yet. Until a class is certified, investors are not represented by counsel unless they retain one. Investors may also choose to remain an absent class member and do nothing at this point.