Insider Selling/Undisclosed Related Party Transactions
Product or Service
This is a securities fraud class action lawsuit against Cbeyond and its founder, Chairman, President and CEO.
The class action lawsuit alleges that beginning on November 1, 2007, Cbeyond 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.
Name (Stock Symbol)
Cbeyond, Inc. (CBEY)
Cbeyond, Inc. provides voice over IP communications services to small businesses in the United States.
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