ARBX Arbinet Corp. (MM)

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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