NEW YORK, Oct. 26, 2005 (PRIMEZONE) -- Labaton Sucharow & Rudoff LLP announces 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 ("Arbinet" or the "Company") (NASDAQ:ARBX) 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"). The lawsuit was filed against Arbinet, J. Curt Hockemeier and John J. Roberts ("Defendants"). The deadline to move for Lead Plaintiff is October 31, 2005.
The complaint alleges that Defendants violated the Securities Exchange Act of 1934, and the Securities Act of 1933. Specifically, the Complaint alleges that the Company failed to disclose and misrepresented that:
-- It 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;
-- Due to credit problems, the Company was forced to suspend
trading of two of its largest customers;
-- The Company's international offerings were not adequately
differentiated from its customers, jeopardizing its ability
to grow overseas.
On June 21, 2005, Arbinet lowered its guidance for both the second quarter and the remainder of 2005. In reaction to this news, shares of Arbinet fell $4.00 per share, or nearly 35%, on June 22, 2005, to close at $7.50 per share.
Labaton Sucharow is one of the country's premier national law firms that represent individual and institutional investors in class action, complex securities and corporate governance litigation. The firm has been a champion of investor rights for over 40 years and has been recognized for its reputation for excellence by the courts.
If you bought Arbinet securities between December 16, 2004 and June 21, 2005, inclusive, you may qualify to serve as Lead Plaintiff. Lead Plaintiff papers must be filed with the court no later than October 31, 2005. If you would like to consider serving as lead plaintiff or have any questions about the lawsuit, please contact one of our representatives or Christopher Keller, Esq. at 800-321-0476.