Cogent Communications securities class action lawsuit

A securities class action lawsuit has been filed against Cogent Communications Holdings, Inc. (Cogent) in the United States — United States District Court for the District of Columbia. The plaintiff, United States — City of Southfield Fire and Police Retirement System, alleges that Cogent and certain executives, including founder, CEO and Chairman Allen Schaeffer, made false and misleading statements and omissions during the Class Period from February 29, 2024 to May 1, 2026, in violation of federal securities laws. The alleged misrepresentations concern the company's optical wavelength 'backlog', claiming that most purported orders were unlikely to result in paid orders, that many customers were unable or unwilling to accept delivery, and that the company had materially misrepresented demand for its optical wavelength services. Additionally, the lawsuit alleges that Cogent was not on track to achieve its revenue and margin targets, lacked the financial capacity to maintain its dividend policy, and that there was an undisclosed risk that Allen Schaeffer would be forced to sell vast quantities of Cogent stock due to his high-risk pledging activities. ClaimsFiler, a shareholder information service, is reminding investors with losses exceeding $100,000 that the deadline to file lead plaintiff applications is September 21, 2026.