Investors Target Cogent Communications in Securities Class Action

The lawsuit, brought by the law firm Bronstein, Gewirtz & Grossman, LLC, centers on claims that Cogent artificially inflated its growth prospects. According to the complaint, the company’s reported backlog of optical wavelength orders was largely illusory, consisting of customers either unable or unwilling to accept delivery. These alleged misrepresentations, the suit claims, left investors with a distorted view of Cogent’s true demand and ability to meet stated revenue targets.

Beyond the operational claims, the filing highlights concerns regarding the company’s dividend policy and the stock-pledging activities of leadership. Specifically, the complaint alleges that Defendant Schaeffer engaged in significant stock pledging, creating an undisclosed risk of forced liquidation that could depress share prices. Investors who purchased Cogent securities during the identified class period have until September 21, 2026, to apply for lead plaintiff status in the ongoing litigation.