Cogent Comm Plummets on Supposed FBI Raid and Megaupload Claims

Shares of Cogent Communications

have been under much pressure Friday morning after rumors circulated that Megaupload was one of the company's largest customers. Megaupload was a file sharing website which was taken down by the Justice Department yesterday. More rumors circulated that the FBI was at Cogent's Washington DC headquarters, rounding up all its employees for questioning. Benzinga tried calling the company at its HQ and there was no answer. After the company fell more than 18%, research firm DA Davidson came out defending Cogent Communications, stating that Megaupload only made up about 3% of Cogent Communications' revenues. Currently, shares of Cogent Communications are trading down 15% at $15.89.