Schatz & Nobel, P.C. Announces Class Action Lawsuit against Arbinet-Thexchange, Inc. -- ARBX


HARTFORD, Conn., Sept. 7, 2005 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the District of New Jersey on behalf of all persons who purchased the Common stock of Arbinet-Thexchange, Inc (Nasdaq:ARBX) ("Arbinet" or "the Company") pursuant or traceable to Arbinet's December 16, 2004 initial public offering ("IPO" or the "Offering").

The Complaint alleges that Arbinet and certain of its officers, directors and underwriters violated federal securities laws by issuing false statements in connection with the Company's IPO. Specifically, the Registration Statement and Prospectus (the "Registration Statement") failed to adequately disclose and misrepresented material information concerning, among other things: (i) the negative impact that certain factors, including, but not limited to, increases in wireless calls and shifts in the geographic market usage mix, would have on Arbinet's revenues and profits; (ii) the relevance of certain statistical data; and (iii) certain other material risks the Company faced which would negatively impact its future growth and revenues.

On May 4, 2005, Arbinet announced its results for the first quarter of 2005 and reported that its results were "flat" compared to the fourth quarter of 2004. Then, on June 21, 2005, Arbinet forecast greatly reduced results for the second quarter of 2005. As alleged in the complaint, Arbinet finally owned up to the true material facts that drive its business, fee revenues and profits information that had been concealed until this point by defendants. Following the June 21, 2005 disclosures, the price of Arbinet's common stock fell by more than 20%.

If you are a member of the class, you may, no later than October 31, 2005, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).

While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.

More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.



            

Contact Data