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Cbeyond, Inc. Summary: The original lawsuit charges Cbeyond and its founder, Chairman, President and CEO, 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.
On August 21, 2008, U.S. District Judge Clarence Cooper issued the Order granting the motion to appoint the Genesee County Group as lead plaintiff and appointed Labaton Sucharow LLP as lead counsel. The Order also established 1:08-cv-1666-CC, In Re Cbeyond, Inc. Securities Litigation, as the Master Docket. On October 24, 2008, the lead plaintiffs filed a Consolidated Amended Complaint. On December 23, 2008, the defendants filed a motion to dismiss the Consolidated Amended Complaint.
On August 28, 2009, a Stipulation and Agreement of Settlement was filed. The proposed settlement is in the amount of $2.3 million. On September 17, 2009, Judge Clarence Cooper preliminarily approved the proposed settlement. The Settlement Hearing is set for January 5, 2010.
INDUSTRY CLASSIFICATION:
SIC Code: 4813
Sector: Services
Industry: Communications Services
| COMPANY/ISSUER NAME: | Cbeyond, Inc. |
| COMPANY/ISSUER TICKER: | CBEY |
| COMPANY WEBSITE: | http://www.cbeyond.net |
| FIRST IDENTIFIED COMPLAINT IN THE DATABASE | |||||||||||||||||
| Steven Weisberg, et al. v. Cbeyond, Inc., et al. | |||||||||||||||||
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| DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT | |||
| Class Action Complaint - Jury Trial Demanded | |||
| Type: Complaint | Date on the document: 5/6/2008 | ||
| Motion Of The Genesee County Group For Appointment As Lead Plaintiff And Approval Of Selection Of Counsel | |||
| Type: Memorandum | Date on the document: 7/7/2008 | ||
| Order For Appointment As Lead Plaintiff And Approval Of Selection Of Counsel | |||
| Type: Order of Consolidation | Date on the document: 8/21/2008 | ||
| REFERENCE COMPLAINT | |||||||||||||||||
| In Re: Cbeyond, Inc. Securities Litigation | |||||||||||||||||
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| DOCUMENTS FOR THE REFERENCE COMPLAINT | |||
| Consolidated Amended Complaint | |||
| Type: Complaint | Date on the document: 10/24/2008 | ||
| Lead Plaintiffs' Notice of Filing Class Action Stipulation and Agreement of Settlement | |||
| Type: Settlement | Date on the document: 08/28/2009 | ||
| US District Court Civil Docket | |||
| Type: Docket | Date on the document: 08/31/2009 | ||
| Preliminary Approval Order Providing for Notice and Hearing in Connection With Proposed Class Action Settlement | |||
| Type: Order | Date on the document: 09/17/2009 | ||
| OTHER DOCUMENTS | |||
| Case Name and/or Number: | |||
| Type: | Date on the document: | ||
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