Cbeyond (CBEY) Announces Preliminary Settlement in Derivative Lawsuit

October 23, 2009 4:29 PM EDT

Cbeyond, Inc. (NASDAQ: CBEY) announced that the Superior Court of Fulton County, Georgia issued an order granting preliminary approval of the settlement of the previously disclosed derivative lawsuit captioned In re Cbeyond, Inc. Derivative Litigation. Although defendants continue to deny plaintiffs' allegations, the Company believes it is in the best interests of its stockholders to focus its attention on its business and put the matter behind it. The settlement is subject to final approval by the Court. As described in the attached Notice, the settlement provides, among other things, for payment of fees and expenses incurred by plaintiffs' counsel in the amount of $200,000 that will be paid by the Company's Directors' and Officers' insurance policy and will have no impact on Cbeyond's financial statements.

As a routine part of the settlement process, the Court has approved the publication of the Notice of Settlement set out below which contains additional details about the lawsuit and the settlement.

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