SAN DIEGO, Aug. 12, 2026 (GLOBE NEWSWIRE) -- Shareholder rights law firm Robbins LLP reminds investors that a securities class action lawsuit has been filed on behalf of all persons and entities that purchased or otherwise acquired Cogent Communications Holdings, Inc. (NASDAQ: CCOI) common stock between February 29, 2024 and May 1, 2026, inclusive (the “Class Period”). The lawsuit is captioned City of Southfield Fire and Police Retirement System v. Cogent Communications Holdings, Inc., No. 26-cv-02609, and is pending in the U.S. District Court for the District of Columbia.

Investors have until September 21, 2026, to seek appointment as lead plaintiff. Cogent Communications Holdings, Inc. is a global, facilities-based provider of internet access, private network services, optical wavelength and transport services, and data center colocation. 

Why Was Cogent Communications Holdings, Inc. (CCOI) Sued? 

The complaint alleges that, throughout the Class Period, Cogent and certain of its senior executives made materially false or misleading statements and failed to disclose material adverse facts about the Company’s optical wavelength business — the centerpiece of its turnaround plan following the acquisition of T-Mobile’s (formerly Sprint’s) wireline business.

Specifically, defendants failed to disclose that:

• the vast majority of the purported orders in Cogent’s optical wavelength “backlog” were unlikely to ever result in a paid order;

• large quantities of customers in the purported backlog were unable or unwilling to accept delivery even if Cogent could timely provision the wavelength; 
  

• as a result, defendants had materially misrepresented customer demand for Cogent’s optical wavelength services and the nature of the Company’s purported “backlog” of wavelength orders;

• Cogent was therefore not on track to achieve its revenue and margin targets, which lacked a reasonable basis in objective fact;

• Cogent did not have the financial capacity or business fundamentals to maintain its long-standing dividend policy; and

• there was a material, undisclosed risk that CEO David Schaeffer would be forced to sell vast quantities of Cogent stock as a result of his high-risk share-pledging activities, further depressing the stock price if the truth were revealed. 
  
  

Why Did Cogent’s (CCOI) Stock Price Drop?

• February 27, 2025: Cogent reported that its wavelength backlog declined from 3,400 to 2,700 orders (after removing 1,500 stale orders) and that connection growth slowed sharply. Cogent’s stock price fell approximately 10%.
  

• May 8, 2025: Cogent disclosed it expected to install only about 5% of its backlog per month, and management admitted that roughly 90% of the third quarter 2024 backlog had “fallen out” — “as expected.” Cogent’s stock price fell approximately 7%.

• August 7–8, 2025: Following weak second quarter 2025 results and sharply higher leverage, Cogent’s stock fell approximately 19% and then 13%, compounded by lenders seizing and selling roughly $82.5 million of CEO Schaeffer’s pledged shares.

• November 6–13, 2025: Cogent slashed its quarterly dividend by 98% (from $1.015 to $0.02 per share), ending a 52-consecutive-quarter streak. The stock declined from $38.30 to $16.68 per share — approximately 56%.

• February 20, 2026: Breaking with prior practice, Cogent refused to provide a specific backlog figure. The stock fell approximately 29%.

• May 4, 2026: CEO Schaeffer conceded that customers were pushing out acceptance of wavelengths. Cogent’s stock fell approximately 29% to close at $16.37 per share — more than 80% below the Class Period high of over $86. 
  
  

What Should Cogent (CCOI) Investors Do Now? 

Investors who purchased or acquired Cogent common stock during the Class Period and suffered significant losses may be eligible to participate in the class action and to seek appointment as lead plaintiff.

Shareholders who wish to serve as lead plaintiff must submit their papers to the court by September 21, 2026. The lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery, and if you take no action you may remain an absent class member. 

For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003. All representation is on a contingency fee basis. Shareholders pay no fees or expenses. 

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About Robbins LLP

A recognized leader in shareholder rights litigation, Robbins LLP has helped restore more than $1 billion in value to shareholders and secured some of the largest recoveries in shareholder derivative litigation history.

"Behind everything we do is the belief that companies should be governed responsibly, fiduciaries should be held accountable, and shareholders deserve transparency and fairness," said Brian J. Robbins, Founding Partner of Robbins LLP.

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