The complaint, City of Southfield Fire and Police Retirement System v. Cogent Communications Holdings, Inc., asserts violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Plaintiffs allege that Cogent executives overstated the strength of their order backlog and failed to disclose that many customers were not prepared to accept product delivery. These claims suggest the company’s financial targets and dividend payments were built on unrealistic projections.

The lawsuit follows a series of significant stock price declines tied to quarterly disclosures between February 2025 and May 2026. The most notable impact occurred in November 2025, when Cogent reduced its quarterly dividend by 98%, triggering a 56% drop in share price over the following week. Additional sharp declines followed reports of underwhelming wavelength revenue and persistent customer acceptance issues. Bleichmar Fonti & Auld LLP, the firm representing the plaintiffs, is currently soliciting information from shareholders who held Cogent common stock during this period.