KTMC says securities fraud class action filed against Cogent Communications

By Atlas Watchline Staff · Legal · August 5, 2026

Kessler Topaz Meltzer & Check says investors can seek lead-plaintiff status in a case tied to Cogent Communications’ optical wavelength business, dividend policy and stock-sale risk.

Kessler Topaz Meltzer & Check, LLP said Tuesday that a securities fraud class action has been filed against Cogent Communications Holdings, Inc. in the U.S. District Court for the District of Columbia.

The firm said the proposed class covers investors who bought or acquired Cogent common stock from Feb. 29, 2024, through May 1, 2026, and that shareholders have until Sept. 21, 2026, to ask to serve as lead plaintiff.

According to the firm’s release, the suit is captioned Southfield Fire and Police Retirement System v. Cogent Communications Holdings, Inc., No. 26-cv-02609 (D.D.C.). Cogent trades on Nasdaq under the symbol CCOI.

The complaint alleges Cogent and related defendants made false or misleading statements or left out material facts about optical wavelength backlog and customer demand. The release says the case also centers on allegations that Cogent was not on track to meet revenue and margin targets, lacked a reasonable basis for its dividend policy, and faced undisclosed risk tied to stock pledging by David Schaeffer.

KTMC’s release says the claims focus on whether most of the orders in Cogent’s wavelength backlog were likely to become paid orders and whether customers were able or willing to accept delivery even if the company could provision the service in time. The release also says the company disclosed further wavelength underperformance and customer acceptance delays on May 4, 2026.

According to the release, Cogent’s shares fell $6.79, or 29%, to close at $16.37 on May 4, 2026.

The announcement did not include a response from Cogent. The release also says the complaint was filed by investors, not by KTMC itself, and describes KTMC as a plaintiff-side law firm focused on securities-fraud class actions.

The lead-plaintiff deadline gives investors a limited window to ask the court to represent the proposed class. The release said attorney Jonathan Naji is the contact for more information.

Sources

• PR Newswire / KTMC announcement

Editorial note: This article was prepared with AI assistance and includes source attribution for reader review.

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