ARBX Arbinet Corp. (MM)

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.