ENGLEWOOD CLIFFS, N.J., May 7, 2008 (PRIME NEWSWIRE) -- Notice is hereby given that Gardy & Notis, LLP has commenced a class action lawsuit on behalf of a class of all purchasers of Cbeyond, Inc. (Nasdaq:CBEY) securities during a class period of November 1, 2007 to February 21, 2008. The lawsuit was filed in the United States District Court for the Northern District of Georgia under Civil Action No. 08-cv-1666.
The lawsuit charges Cbeyond and its founder, Chairman, President and CEO, James Geiger, with violating Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and certain rules thereunder. The case alleges that beginning on November 1, 2007, the defendants made specific misstatements designed to hide the fact that Cbeyond was recording a higher churn rate for its services, which permitted certain of Cbeyond's officers and directors to engage in insider sales of $39 million of Cbeyond stock at artificially inflated prices. Shortly thereafter, Cbeyond was forced to admit on February 21, 2007 that it elected to make certain operational changes that caused its churn rate to climb even higher, contrary to its prior representations. Cbeyond's stock price dropped 20% on this shocking news.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired Cbeyond securities between November 1, 2007 and February 21, 2008, excluding defendants and their affiliates. Plaintiff is represented by Gardy & Notis, LLP, a law firm with extensive experience in prosecuting class actions involving corporate and securities fraud.
If you are a member of the proposed class, you may, no later than 60 days from today, move the court to serve as a lead plaintiff of the class. Any member of the class may move the Court to serve as lead plaintiff through counsel of their choosing, or may choose to do nothing and remain an absent class member.
If you wish to obtain a copy of the complaint or have any questions concerning this lawsuit, please contact Dustin Mansoor at 201-567-7377 or by e-mail at dmansoor@gardylaw.com. You can also obtain more information by visiting our website at www.gardylaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca