Cogent Class Action Adds CEO, CFO as Defendants; Lead Plaintiff Deadline Sept 21
CCOI is trading near its 52-week low of $9 (9.4% above the low).
Summary
The securities class action against Cogent Communications now names CEO David Schaeffer and CFO Thaddeus G. Weed as individual defendants, alleging they controlled SEC filings and investor communications that concealed wavelength backlog conversion issues, dividend sustainability risks, and pledged-share dangers. The complaint claims the stock fell from over $86 in November 2024 to under $17 after the class period, an alleged loss of about $69 per share or more than 80%. It also alleges that in August 2025, lenders seized and sold $82.5 million of Schaeffer's pledged shares after margin call defaults, and that the dividend was later cut by 98%. The lead plaintiff deadline is September 21, 2026. This follows the initial lawsuit filing reported on August 4, 2026, and adds specific individual liability allegations and a concrete deadline for investors to seek lead plaintiff status.
At the time of this announcement, CCOI was trading at $9.85 on NASDAQ in the Technology sector, with a market capitalization of approximately $504.5M. The 52-week trading range was $9.00 to $45.69. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: PR Newswire.