NEW YORK, May 9, 2008 (PRIME NEWSWIRE) -- The Brualdi Law Firm P.C. announced today that a class action lawsuit has been commenced on behalf of shareholders who acquired Cbeyond, Inc. (Nasdaq:CBEY) securities between November 1, 2007 and February 21, 2008, inclusive (the Class Period). The case is pending in the United States District Court for the Northern District of Georgia.
No class has yet been certified in the above action. If you purchased Cbeyond stock during the Class Period, you may be a member of the proposed Class. You must move the Court on or before July 7, 2008, if you wish to serve as a lead plaintiff. In making your decision, you should take into account that those with large financial losses resulting from the alleged federal securities law violations are given preference in being appointed lead plaintiff.
To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Tali Leger, Director of Shareholder Relations at The Brualdi Law Firm P.C., 29 Broadway, Suite 2400, New York, New York 10006, by telephone toll free at (877) 495-1877 or (212) 952-0602, by email to tleger@brualdilawfirm.com or visit our website at http://www.brualdilawfirm.com/
The lawsuit charges Cbeyond and its founder, Chairman, President and CEO, James Geiger, 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.