Alert: Claims focus on alleged operational difficulties in converting the former Sprint voice network into a wavelength-optimized platform, including extended provisioning cycles.

Levi & Korsinsky, LLP notifies investors in Cogent Communications Holdings, Inc. (NASDAQ: CCOI) that a class action has been filed on behalf of shareholders who purchased securities between February 29, 2024 and May 1, 2026. Find out if you might qualify for recovery. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.

CCOI shares allegedly declined by more than 80%, approximately $69 per share, from a Class Period high of over $86 in November 2024 to less than $17 after May 1, 2026. Motions for lead plaintiff must be filed with the Court by September 21, 2026.

Alleged Spring Network Conversion and Wavelength Revenue Disclosure Issues

The complaint alleges that Cogent’s plan to turn the acquired T-Mobile Wireline Business, formerly Sprint, into a growth engine depended on reconfiguring a legacy voice network for optical wavelength services. The case centers on whether Cogent adequately disclosed the operational challenges associated with converting the former Sprint wireline network into a wavelength-optimized platform.

As pleaded, Cogent had acquired a business with negative 80% margin and declining revenues of more than 10% per year. The lawsuit claims that the Company’s ability to meet its wavelength growth strategy relied on reducing provisioning cycles and converting customer demand into revenue-generating connections.

Provisioning Delays Allegedly Undermined Customer Conversion

According to the filing, provisioning windows remained elongated at roughly 90 days and, at times, 120 days or more. The complaint further alleges that the Company described the network conversion as a "daunting" task while still presenting wavelength demand as a major growth driver.

The action claims customers who could not wait for Cogent’s provisioning delays were permitted to seek other solutions, weakening the business case that allegedly supported Cogent’s long-term revenue expectations.

Alleged Provisioning Impact by the Numbers

• Cogent acquired the former Sprint wireline assets for $1, subject to adjustments for net debt and net working capital.
• The acquired business allegedly had negative 80% margin before the transaction.
• The Company targeted a $500 million wavelength revenue run rate by May 2028.
• Provisioning cycles allegedly stretched to 90 to 120+ days during key periods.
• The complaint alleges that up to 90% of the wavelength backlog was ultimately lost.

"The complaint raises serious questions about whether investors received accurate information regarding the operational challenges involved in converting the former Sprint network into a wavelength platform. The alleged provisioning issues warrant review of what investors were told and when." -- Joseph E. Levi, Esq.

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WHY LEVI & KORSINSKY — Ranked in ISS Securities Class Action Services' Top 50 Report for seven consecutive years, Levi & Korsinsky, LLP is a nationally recognized leader in shareholder rights litigation. With a team of over 70 professionals, the firm has recovered hundreds of millions of dollars for investors. Investors who suffered losses have until September 21, 2026 to seek appointment as lead plaintiff.

Frequently Asked Questions About the CCOI Lawsuit

Q: What specific misstatements does the CCOI lawsuit allege? A: The complaint alleges Cogent Communications Holdings, Inc. made materially false or misleading statements regarding optical wavelength demand, backlog quality, provisioning challenges, and the sustainability of its dividend policy during the Class Period. When alleged corrective information regarding backlog loss and a 98% dividend cut was disclosed, the stock price declined sharply.

Q: When did Cogent Communications Holdings, Inc. allegedly mislead investors? A: The Class Period runs from February 29, 2024 to May 1, 2026. The complaint alleges that corrective disclosures revealed information that caused a significant stock decline.

Q: What court was the CCOI class action filed in? A: The case was filed in the United States District Court for the District of Columbia, governed by the Private Securities Litigation Reform Act of 1995.

Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

Q: What happens after I contact Levi & Korsinsky? A: An attorney can review your trading history at no cost and provide an initial assessment of potential eligibility based on purchase dates, sale dates, share quantities, and losses.

Q: What if I already sold my CCOI shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.

Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. If there is a settlement or recovery, eligible class members generally submit a claim form to seek their portion.

Q: What does it cost me to participate? A: There is no upfront cost to contact the firm. Securities class actions are generally handled on a pure contingency basis. No upfront fees, no retainer, and no out-of-pocket costs. Any attorneys' fees and expenses awarded to class counsel are subject to court approval.

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