Finkelstein, Thompson, and Loughran Announces Investigation of Cogent Communications Group, Inc.

WASHINGTON, Aug. 10  /PRNewswire/ -- The law firm of Finkelstein, Thompson & Loughran announces that a lawsuit seeking class action status has been filed in the United States District Court for the District of Columbia on behalf of all persons who purchased the common stock of Cogent Communications Group, Inc. (AMEX:COI) ("Cogent") between February 14, 2005 and June 7, 2005 inclusive (the "Class Period"). Finkelstein, Thompson & Loughran is investigating similar claims at this time and welcomes inquiries from potential class members concerning their rights and interests in this matter.

The lawsuit alleges that Cogent violated the federal securities laws by issuing false or misleading public statements. Specifically, the complaint alleges that Cogent and various officers of Cogent, throughout the class period, failed to disclose that the Company intended to sell shares of common stock to the public at a price well below Cogent's then-prevailing market price. The complaint further alleges the defendants either knew or recklessly disregarded the fact that such a sub-market offering price would have the immediate effect of causing a decline in the value of shares held by current Cogent shareholders.

On June 7, 2005, after the close of trading, Cogent announced it had agreed to sell 10,000,000 shares of stock at a public offering price of $6.00 per share, a price substantially below Cogent's then-current $10.12 share price. The next day, Cogent's stock price opened at $7.69, down $2.43 from the prior day's closing price, and ultimately closed at $7.15 on extremely high trading volume. This was a dramatic, single-day decline of 29%.

If you are a member of the class, you may, no later than October 3, 2005, request that the Court appoint you as a lead plaintiff. A lead plaintiff is a class member appointed by the Court to direct the litigation on behalf of the class. Although a class member need not be appointed as a lead plaintiff to receive a proportionate share of any proceeds of the litigation, lead plaintiffs make important decisions that could affect the prosecution of the class claims, including decisions concerning settlement. The securities laws create a rebuttable presumption that the plaintiff with the largest financial interest in the litigation is the most adequate to serve as a lead plaintiff.

With offices in Washington, DC and San Francisco, CA, Finkelstein, Thompson & Loughran has spent almost three decades delivering outstanding representation to institutional and individual clients in connection with securities and other finance-related litigation, and has been appointed as lead or co-lead counsel in dozens of shareholder class actions. Indeed, in the past ten years, the firm has served in leadership roles in cases that have recovered over $1 billion for investors and consumers.

If you have any questions concerning this press release or your rights or interests, please contact Finkelstein, Thompson & Loughran's Washington, DC office at [phone], or by email at . 

DATASOURCE: Finkelstein, Thompson & Loughran



CONTACT:  Donald J. Enright, Esq. of Finkelstein, Thompson & Loughran,

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Web site:  http://www.ftllaw.com/ 

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