Lerach Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit against Arbinet-Thexchange, Inc.
September 02 2005 - 5:38PM
Business Wire
Lerach Coughlin Stoia Geller Rudman & Robbins LLP ("Lerach
Coughlin") (http://www.lerachlaw.com/cases/arbinet/) today
announced that a class action lawsuit has been commenced in the
United States District Court for the District of New Jersey on
behalf of purchasers of Arbinet-Thexchange, Inc. ("Arbinet")
(NASDAQ:ARBX) common stock who purchased their shares pursuant or
traceable to Arbinet's December 16, 2004 initial public offering
("IPO" or the "Offering"). If you wish to serve as lead plaintiff,
you must move the Court no later than 60 days from today. If you
wish to discuss this action or have any questions concerning this
notice or your rights or interests, please contact plaintiff's
counsel, Samuel H. Rudman or David A. Rosenfeld of Lerach Coughlin
at 800/449-4900 or 619/231-1058 or via e-mail at wsl@lerachlaw.com.
If you are a member of this class, you can view a copy of the
complaint as filed or join this class action online at
http://www.lerachlaw.com/cases/arbinet/. Any member of the
purported 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. The complaint charges Arbinet and
certain of its officers, directors and underwriters with violations
of the Securities Act of 1933. Arbinet is the leading electronic
market for trading, routing and settling communications capacity.
The complaint alleges that, in connection with the Company's IPO,
defendants issued a materially false and misleading Registration
Statement and Prospectus (the "Registration Statement").
Specifically, the Registration Statement failed to adequately
disclose and misrepresented material information concerning, among
other things: (i) the negative impact that certain factors,
including, but not limited to, increases in wireless calls and
shifts in the geographic market usage mix, would have on Arbinet's
revenues and profits; (ii) the relevance of certain statistical
data; and (iii) certain other material risks the Company faced
which would negatively impact its future growth and revenues. On
May 4, 2005, Arbinet announced its results for the first quarter of
2005, the three months ended March 31, 2005 and reported that its
results were "flat" compared to the fourth quarter of 2004. Then,
on June 21, 2005, Arbinet forecast greatly reduced results for the
second quarter of 2005, the three months ending June 30, 2005. As
alleged in the complaint, Arbinet finally owned up to the true
material facts that drive its business, fee revenues and profits -
information that had been concealed until this point by defendants.
Following the June 21, 2005 disclosures, the price of Arbinet's
common stock fell by more than 20%. Plaintiff seeks to recover
damages on behalf of all purchasers of Arbinet common stock who
purchased their shares pursuant or traceable to Arbinet's December
16, 2004 IPO. The plaintiff is represented by Lerach Coughlin,
which has expertise in prosecuting investor class actions and
extensive experience in actions involving financial fraud. Lerach
Coughlin, a 150-lawyer firm with offices in San Diego, San
Francisco, Los Angeles, New York, Boca Raton, Washington, D.C.,
Houston, Philadelphia and Seattle, is active in major litigations
pending in federal and state courts throughout the United States
and has taken a leading role in many important actions on behalf of
defrauded investors, consumers, and companies, as well as victims
of human rights violations. Lerach Coughlin lawyers have been
responsible for more than $20 billion in aggregate recoveries. The
Lerach Coughlin Web site (http://www.lerachlaw.com) has more
information about the firm.
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