Shareholder Class Action Filed Against Arbinet-thexchange, Inc. by the Law Firm of Schiffrin & Barroway, LLP
September 26 2005 - 7:30PM
PR Newswire (US)
RADNOR, Pa., Sept. 26 /PRNewswire/ -- The following statement was
issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the
United States District Court for the District of New Jersey on
behalf of all securities purchasers of Arbinet-thexchange, Inc.
(NASDAQ:ARBX) ("Arbinet" or the "Company") who bought pursuant
and/or traceable to the Company's Initial Public Offering ("IPO")
on or about December 16, 2004 and between December 16, 2004, and
June 21, 2005 inclusive (the "Class Period"). If you wish to
discuss this action or have any questions concerning this notice or
your rights or interests with respect to these matters, please
contact Schiffrin & Barroway, LLP (Darren J. Check, Esq. or
Richard A. Maniskas, Esq.) toll-free at 1-888-299-7706 or
1-610-667-7706, or via e-mail at . The complaint charges
Arbinet-thexchange, Inc., J. Curt Hockemeier and John J. Roberts
with violations of the Securities Exchange Act of 1934. More
specifically, the Complaint alleges that the Company failed to
disclose and misrepresented the following material adverse facts
which were known to defendants or recklessly disregarded by them:
(1) that Arbinet was experiencing a shorter than average call
duration and a mix shift to wireless calls from wired calls, which
led to a decrease in the average number of minutes the Company
transacted on the exchange; (2) that the Company due to credit
problems was forced to suspend trading for two of its largest
customers; (3) that the Company's international offerings were not
adequately differentiated from its competitors, thereby
jeopardizing Arbinet's ability to grow abroad; and (4) that a
result of the foregoing, the defendant's positive statements about
the Company's condition and progress lacked in all reasonable
basis. On June 21, 2005, Arbinet lowered its guidance for both the
second quarter and all of 2005. On this news, shares of Arbinet
fell $4.00 per share, or 34.78 percent, on June 22, 2005, to close
at $7.50 per share. Plaintiff seeks to recover damages on behalf of
class members and is represented by the law firm of Schiffrin &
Barroway, which prosecutes class actions in both state and federal
courts throughout the country. Schiffrin & Barroway is a
driving force behind corporate governance reform, and has recovered
billions of dollars on behalf of institutional and individual
investors from the United States and around the world. For more
information about Schiffrin & Barroway, or to sign up to
participate in this action online, please visit
http://www.sbclasslaw.com/. If you are a member of the class
described above, you may, not later than October 31, 2005 move the
Court to serve as lead plaintiff of the class, if you so choose. A
lead plaintiff is a representative party that acts on behalf of
other class members in directing the litigation. In order to be
appointed lead plaintiff, the Court must determine that the class
member's claim is typical of the claims of other class members, and
that the class member will adequately represent the class. Under
certain circumstances, one or more class members may together serve
as "lead plaintiff." Your ability to share in any recovery is not,
however, affected by the decision whether or not to serve as a lead
plaintiff. You may retain Schiffrin & Barroway, or other
counsel of your choice, to serve as your counsel in this action.
CONTACT: Schiffrin & Barroway, LLP Darren J. Check, Esq.
Richard A. Maniskas, Esq. 280 King of Prussia Road Radnor, PA 19087
1-888-299-7706 (toll-free) or 1-610-667-7706 Or by e-mail at
DATASOURCE: Schiffrin & Barroway, LLP CONTACT: Darren J. Check,
Esq. or Richard A. Maniskas, Esq., Schiffrin & Barroway, LLP,
+1-888-299-7706 or +1-610-667-7706, or e-mail at Web site:
http://www.sbclasslaw.com/
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