A class action has been filed against Arbinet-Thexchange, Inc. (ARBX), certain of its officers and directors by stockholders who purchased the company's common stock between December 16, 2004 and December 16, 2004. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.

The complaint charges Arbinet and certain of its officers, directors and underwriters with violations of the Securities Act of 1933. Arbinet is the leading electronic market for trading, routing and settling communications capacity.

The complaint alleges that, in connection with the Company's IPO, defendants issued a materially false and misleading Registration Statement and Prospectus (the "Registration Statement"). Specifically, the Registration Statement failed to adequately disclose and misrepresented material information concerning, among other things: (i) the negative impact that certain factors, including, but not limited to, increases in wireless calls and shifts in the geographic market usage mix, would have on Arbinet's revenues and profits; (ii) the relevance of certain statistical data; and (iii) certain other material risks the Company faced which would negatively impact its future growth and revenues.

The complaint further alleges that on or around May 4, 2005, Arbinet announced its results for the first quarter of 2005, the three months ended March 31, 2005 and reported that its results were "flat" compared to the fourth quarter of 2004. Then, on June 21, 2005, Arbinet forecast greatly reduced results for the second quarter of 2005, the three months ending June 30, 2005. As alleged in the complaint, Arbinet finally owned up to the true material facts that drive its business, fee revenues and profits – information that had been concealed until this point by defendants. Following the June 21, 2005 disclosures, the price of Arbinet's common stock fell by more than 20%.

If you bought Arbinet-Thexchange, Inc. securities between December 16, 2004 and December 16, 2004, inclusive, and would like to obtain information about the Arbinet-Thexchange, Inc. lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney.