Cogent Communications Securities Fraud Class Action

A securities class action lawsuit has been filed against Cogent Communications Holdings, Inc. (NasdaqGS: CCOI) in the United States — United States District Court for the District of Columbia. The suit, brought by the United States — City of Southfield Fire and Police Retirement System, alleges that Cogent and certain executives failed to disclose material information during the Class Period from February 29, 2024 to May 1, 2026, violating federal securities laws. The alleged misrepresentations include that most of the purported orders in the company's optical wavelength 'backlog' were unlikely to result in paid orders, that many backlog customers were unable or unwilling to accept delivery, that the company had misrepresented demand for its optical wavelength services, that it was not on track to achieve revenue and margin targets, that it lacked the financial capacity to maintain its dividend policy, and that there was an undisclosed risk that founder, CEO and Chairman Allen Schaeffer would be forced to sell vast quantities of stock due to high-risk pledging activities. The law firm Kahn Swick & Foti, LLC is reminding investors with substantial losses that they have until September 21, 2026 to file lead plaintiff applications. The case is United States — City of Southfield Fire and Police Retirement System v. Cogent Communications Holdings, Inc., No. 26-cv-02609.