The litigation, filed by the City of Southfield Fire and Police Retirement System, alleges that senior executives at Cogent misrepresented the strength of the company's optical wavelength "backlog." According to the complaint, the majority of these purported orders were unlikely to result in actual revenue, and many customers were unable to accept delivery of the services as promised. These undisclosed operational weaknesses allegedly left the company unable to meet its revenue targets or maintain its dividend, which was eventually slashed by 98% in late 2025.
The firm Robbins LLP is currently representing investors seeking to recover losses accrued during the Class Period. The lawsuit highlights a series of sharp stock price declines following the company's disclosures regarding backlog attrition and the financial strain caused by CEO David Schaeffer’s share-pledging activities. Investors who acquired CCOI stock during the specified timeframe have until September 21, 2026, to file for appointment as lead plaintiff in the case.
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