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Case Status:    SETTLED
On or around 01/05/2010 (Date of order of final judgment)

Filing Date: May 06, 2008

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 was set for January 5, 2010. On January 5, 2010, Judge Clarence Cooper approved the settlement, approved the plan of allocation and granted the motion for attorney fees and reimbursement of expenses. The Final Order and Judgment was entered the same day and the action was dismissed with prejudice.

COMPANY INFORMATION:

Sector: Services
Industry: Communications Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: CBEY
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: N.D. Georgia
DOCKET #: 08-CV-1666
JUDGE: Hon. Clarence Cooper
DATE FILED: 05/06/2008
CLASS PERIOD START: 11/01/2007
CLASS PERIOD END: 02/21/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Chitwood Harley Harnes LLP (Atlanta)
    1230 Peachtree Street, N.E., 2300 Promenade II, Chitwood Harley Harnes LLP (Atlanta), GA 30309
    888.873.3999 404.873.4476 · info@chitwoodlaw.com
  2. Gardy & Notis, LLP (NJ)
    440 Sylvan Avenue, Gardy & Notis, LLP (NJ), NJ 07632
    201-567-7377 201-567-7337 · info@gardylaw.com
No Document Title Filing Date
COURT: N.D. Georgia
DOCKET #: 08-CV-1666
JUDGE: Hon. Clarence Cooper
DATE FILED: 10/24/2008
CLASS PERIOD START: 11/01/2007
CLASS PERIOD END: 02/21/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Labaton Sucharow LLP
    140 Broadway, Labaton Sucharow LLP, NY 10005
    212.907.0700 212.818.0477 · info@labaton.com
No Document Title Filing Date