ENGLEWOOD CLIFFS, N.J., May 7, 2008 (Lawfuel) — Notice is
hereby given that Gardy & Notis, LLP has commenced a class action
lawsuit on behalf of a class of all purchasers of Cbeyond, Inc.
(Nasdaq:CBEY) securities during a class period of November 1, 2007 to
February 21, 2008. The lawsuit was filed in the United States District
Court for the Northern District of Georgia under Civil Action No.
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.
Plaintiff seeks to recover damages on behalf of himself and all other
individual and institutional investors who purchased or otherwise
acquired Cbeyond securities between November 1, 2007 and February 21,
2008, excluding defendants and their affiliates. Plaintiff is
represented by Gardy & Notis, LLP, a law firm with extensive experience
in prosecuting class actions involving corporate and securities fraud.
If you are a member of the proposed class, you may, no later than 60
days from today, move the court to serve as a lead plaintiff of the
class. Any member of the class may move the Court to serve as lead
plaintiff through counsel of their choosing, or may choose to do
nothing and remain an absent class member.
If you wish to obtain a copy of the complaint or have any questions
concerning this lawsuit, please contact Dustin Mansoor at 201-567-7377
or by e-mail at [email protected] You can also obtain more
information by visiting our website at www.gardylaw.com.