Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Cogent Communications Holdings, Inc. (““Cogent” or the “Company”) (NASDAQ: CCOI) and reminds investors of the September 21, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

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Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.

As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (a) that the vast majority of the purported orders in Cogent’s optical wavelength “backlog” were unlikely to ever result in a paid order; (b) that large quantities of the customers in Cogent’s purported optical wavelength “backlog” were unable or unwilling to accept delivery even if Cogent was in a position to provision the wavelength in a timely manner; (c) that, as a result of (a)-(b) above, defendants had materially misrepresented customer demand for Cogent’s optical wavelength services and the nature of the Company’s purported “backlog” of wavelength orders; (d) that, as a result of (a)-(c) above, Cogent was not on track to achieve its revenue and margin targets and such targets lacked a reasonable basis in objective fact; (e) that Cogent did not have the financial capacity or business fundamentals to maintain its long-standing dividend policy; and (f) that there was a material, undisclosed risk that defendant Schaeffer would be forced to sell vast quantities of Cogent stock as a result of his high-risk pledging activities, thereby further depressing the price of Cogent stock in the event the truth regarding Cogent’s “backlog,” demand issues, and financial position were ever revealed.

On February 27, 2025, Cogent issued a release announcing its fourth quarter 2024 and year-end 2024 financial results, reporting that its annual revenue run rate was only $28 million — a far cry from the 2028 target of $500 million — and its backlog declined sequentially from 3,400 in the prior quarter to 2,700 in the fourth quarter, with growth in wavelength connections slowing from 287 net additions in 3Q24 to 77 net additions in 4Q24. On this news, Cogent’s stock price fell $7.65, or 10%, on February 27, 2025, on abnormally high volume.

On May 8, 2025, Cogent issued a release announcing its first quarter 2025 financial results, with defendants admitting that 90% of the 3,400 backlog figure quoted with 3Q24 results “fell out” and that customers were not ready to accept delivery even though Cogent was ready to provision them. On this news, Cogent’s stock price fell $3.91, or 7%, to close on May 8, 2025, on abnormally high volume.

On August 7, 2025, Cogent issued a release announcing its second quarter 2025 financial results, reporting that the Company only added 147 net connections during the quarter (far less than the claimed 4% to 5% monthly conversion rate), and defendant Schaeffer stated that Cogent had installed “several hundred” additional wavelengths to customers who were not yet being billed because the customers were “surprised” by Cogent’s quick provisioning times and were not able or willing to accept the service, with Cogent’s gross leverage ratio increasing to 8.65x. On this news, Cogent’s stock price fell $8.54, or 19%, on August 7, 2025, and declined an additional $4.72, or 13%, on August 8,

The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.

Faruqi & Faruqi, LLP also encourages anyone with information regarding Cogent’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

To learn more about the Cogent class action, go to www.faruqilaw.com/CCOI or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

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Frequently Asked Questions (FAQ) for Investors Regarding the Cogent Securities Class Action Lawsuit:

What is the Cogent securities fraud lawsuit about?

Faruqi & Faruqi, LLP is investigating claims on behalf of investors in Cogent Communications Holdings, Inc. (NASDAQ: CCOI) arising from allegedly false and misleading statements made during the Class Period. The lawsuit alleges that Cogent and certain of its officers misrepresented the nature and strength of the Company’s optical wavelength backlog, purportedly concealing that the vast majority of orders in that backlog were unlikely to ever result in paid revenue and that large numbers of customers were allegedly unable or unwilling to accept delivery of services. The complaint further alleges that, as a result of these misrepresentations, Cogent’s publicly stated revenue and margin targets lacked a reasonable basis, the Company’s ability to maintain its dividend policy was materially overstated, and investors were not informed of a material risk that a senior executive’s pledging of Company stock could lead to forced sales that would further depress the share price. When corrective disclosures were made — including admissions in May 2025 that approximately 90% of a previously reported backlog figure had “fallen out” — Cogent’s stock price allegedly declined significantly, causing losses to investors who purchased shares at allegedly artificially inflated prices.

Who may be eligible to participate in the lawsuit?

Investors who purchased or otherwise acquired shares of Cogent Communications Holdings, Inc. common stock on the NASDAQ under the ticker symbol CCOI between February 29, 2024 and May 1, 2026, inclusive, may be eligible to participate in this lawsuit as members of the proposed class. Eligibility to participate is not conditioned on being appointed lead plaintiff; class members who take no active role in the litigation may still share in any recovery that is ultimately obtained. Investors who believe they suffered losses on their CCOI holdings during the Class Period are encouraged to review their trading records to determine whether they fall within the defined class. Participation in a securities class action does not require any upfront payment, as plaintiff counsel in such cases typically works on a contingency-fee basis.

What is a lead plaintiff, and how can I seek appointment?

A lead plaintiff is a court-appointed representative who acts on behalf of all members of the proposed class and plays an active role in directing the litigation, including decisions regarding litigation strategy and settlement. Courts generally appoint the investor or investor group that demonstrates the largest financial interest in the relief sought and that otherwise satisfies the requirements of the applicable securities laws. Any class member who wishes to be considered for appointment as lead plaintiff must file a motion with the court no later than September 21, 2026, which is the lead plaintiff deadline in this action. Importantly, investors are not required to seek appointment as lead plaintiff in order to be eligible to share in any class recovery; the vast majority of class members participate without taking on any formal representative role.

What should investors do if they purchased Cogent stock during the Class Period?

Investors who purchased or acquired Cogent Communications Holdings, Inc. (NASDAQ: CCOI) stock during the Class Period — February 29, 2024 through May 1, 2026, inclusive — are encouraged to promptly review their brokerage and trading records to confirm the dates and prices of their transactions. It is important to preserve all relevant documentation, including trade confirmations, account statements, and any communications relating to CCOI investments, as such records may be necessary to establish eligibility and the extent of any claimed losses. Investors wishing to be considered for the lead plaintiff role must act before the September 21, 2026 court deadline, though consulting with counsel at the earliest opportunity is advisable regardless of whether an investor intends to seek that appointment. Faruqi & Faruqi, LLP is available to speak with investors about their legal rights and options at no obligation prior to that deadline.

Why should investors contact Faruqi & Faruqi, LLP?

Faruqi & Faruqi, LLP has represented investors in securities litigation for decades and has recovered hundreds of millions of dollars for shareholders. Investors who purchased Cogent securities during the Class Period may contact the firm to discuss their legal rights, potential claims, and the lead plaintiff process at no cost or obligation.

Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.

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