Cases

Cbeyond, Inc. Securities Fraud Class Action

Gardy & Notis, LLP has filed a class action lawsuit on behalf of purchasers of Cbeyond, Inc. (NASDAQ: CBEY) securities during a class period of November 1, 2007 to February 21, 2008.

The complaint charges Cbeyond and its founder, Chairman, President and CEO with violating the federal securities laws by issuing a series of materially false and misleading statements 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, resulting in a 20% drop in the price of Cbeyond stock.

For more information regarding the lawsuit or to obtain a copy of the complaint or any Court filings, please contact us.