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Cogent Communications Group, Inc. under Investor Investigation over Executive Compensation

An investigation on behalf of current long term investors in Cogent Communications Group, Inc. (NASDAQ:CCOI) was announced and NASDAQ:CCOI stockholders should contact the Shareholders Foundation at mail@shareholdersfoundation.com

 
 
mail@shareholdersfoundation.com
mail@shareholdersfoundation.com
PRLog - Jun. 8, 2011 - SAN DIEGO -- An investigation on behalf of current long term investors in shares of Cogent Communications Group, Inc. (NASDAQ:CCOI) concerning possible breaches of fiduciary duties related to potential excessive compensation that was awarded to certain senior officers and executives at Cogent Communications Group was announced.

If you are a current long term investor in Cogent Communications Group, Inc. (NASDAQ: CCOI) stock and/or if you have any information relating the investigation including whistleblowers and former employees, you have certain options and you should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

The investigation by a law firm focuses on whether the directors and officers of Cogent Communications Group Inc. harmed the company by breaching their fiduciary duties to shareholders. In particular the investigation on behalf of current long term investors in Cogent Communications Group (CCOI) focuses on possible shareholder claims that certain of Cogent Communications Group’s senior officers and executive were unjustly enriched through their receipt of unwarranted, excessive or unearned compensation in past years.  

Cogent Communications Group’s CEO earned a total compensation in2010 of $3.99million, including a time-vested stock award, which was worth approximately $3.7 million.

However, Cogent Communications Group’s shareholders recently expressed their disdain for executive pay packages by voting “no” on Cogent Communications Group's say on pay provision. Cogent Communications Group Inc. received only 39% support for its pay practices at its April 27 annual meeting, according to a company filing.

The investigation concerns possible claims that the prior compensation awarded at Cogent Communications Group is improper based upon its current operating condition.

Cogent Communications Group’s 12months Total Revenue increased from $185.66million in 2007 to $263.42million in 2010. Cogent Communications Group, Inc. reported a Net Loss of $35.36million in 07, $15.22million in 08, and $17.15million in 09. For 2010 Cogent Communications Group, Inc. reported a small Net Income of $0.67million. For the first quarter in 2011 Cogent Communications Group, Inc. reported quarterly Revenue of $73.46million with a quarterly Net Loss of $0.28million.

Shares of Cogent Communications Group, Inc. increased from as low as $3.97 per share in November 08 to slightly above $15 in May 2011. However NASDAQ CCOI stock traded during 2008 as high as $22.32 per share and during 2007 as high as$32.85 per share. Leaving investors who purchased during the high of 2007 with a more than 50% loss.

The investigation also seeks to determine whether certain senior officers and executives at Cogent Communications Group were awarded salaries, bonuses, stock options and other forms of long-term, ‘incentive’ or retirement compensation that were excessive or unwarranted based on the Cogent Communications Group’s performance as compared to what senior officers and executives at comparable companies were making and/or results that were fraudulent, misleading or not long-lasting.

Finally the investigation focuses also on possible shareholder claims that would allow Cogent Communications Group (NASDAQ: CCOI) stockholders to more efficiently influence or control future compensation decisions at Cogent Communications Group Inc.

Those who are current long term investors in Cogent Communications Group, Inc. (Public, NASDAQ:CCOI) stock and/or those who have any information relating the investigation including also whistleblowers and former employees, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

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The Shareholders Foundation, Inc. is a professional portfolio legal monitoring service and an investor advocacy group. We do research related to shareholder issues and inform investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. At Shareholders Foundation, Inc. we are in contact with a large number of shareholders. We believe that together we can combine the interests of many investors, and use the size of our interest as leverage against the giant corporations. We offer help, support, and assistance for every shareholder. We help investors find answers to their questions and equitable solutions to their problems. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

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Contact Email:
***@shareholdersfoundation.com Email Verified
Source:Shareholders Foundation, Inc.
Phone:+1-(858)-779-1554
Zip:92108
City/Town:San Diego - California - United States
Industry:Banking, Business, Finance
Tags:ccoi, cogent communications, Cogent Communications Group, NASDAQ: CCOI, executive compensation, salary, employee
Shortcut:prlog.org/11530985
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