The lawsuit, City of Southfield Fire and Police Retirement System v. Cogent Communications Holdings, Inc., alleges that the company and its executives violated the Securities Exchange Act of 1934 by disseminating misleading information regarding the firm's optical wavelength business. According to the complaint, Cogent allegedly inflated its "backlog" figures and misrepresented customer demand, while failing to disclose that a significant portion of purported orders were unlikely to result in paid contracts.
Investors Face September 21 Deadline in Cogent Communications Class Action
Investors who purchased Cogent Communications Holdings, Inc. common stock between February 29, 2024, and May 1, 2026, have until September 21, 2026, to seek appointment as lead plaintiff in a federal class action lawsuit filed by Robbins Geller Rudman & Dowd LLP.
These disclosures triggered a series of sharp stock price declines throughout 2025 and early 2026. The volatility intensified in November 2025, when Cogent announced it would pause stock buybacks and slash its quarterly dividend from $1.015 per share to $0.02—a 98% reduction that ended 52 consecutive quarters of dividend growth. By the time the company reported its first-quarter 2026 results in May, CEO David Schaeffer acknowledged that customers were pushing out their acceptance of wavelength services, leading to a further 29% drop in share price.
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