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Kirby McInerney LLP Reminds Investors That a Class Action Lawsuit Has Been Filed on Behalf of Edgio, Inc. f/k/a Limelight Networks, Inc. (EGIO) Investors and Encourages Investors to Contact the Firm Before June 26, 2023

By: via Business Wire

The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of Arizona on behalf of those who acquired Edgio, Inc. f/k/a Limelight Networks, Inc. (“Edgio” or the “Company”) (NASDAQ: EGIO) securities during the period from February 11, 2021 through March 12, 2023 (the “Class Period”). Investors have until June 26, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.

Edgio provides software solutions for companies, including services such as digital content delivery, online video delivery, cloud security, edge computing, cloud storage, and professional services.

On March 13, 2023, Edgio issued a press release disclosing that it will restate its previously issued financial statements for the years ended December 31, 2021 and 2020 and quarterly reports for 2022 and 2021 because its audit committee had “identified an error in the Company’s historic accounting treatment of Edgio’s Open Edge solution.” The press release also stated that the restatement would reduce previously reported revenue. The same day, Edgio filed a Form 8-K with the SEC stating that, as it was still evaluating the financial impact of the accounting error, it could not file its fiscal 2022 annual report on time. The Company also revealed that it expects to disclose “a material weakness in the Company’s design and operation of effective internal controls over the accounting for the Impacted Open Edge transactions.” On this news, the price of Edgio shares declined by $0.16 per share, or approximately 15.53%, from $1.03 per share to close at $0.87 on March 13, 2023.

The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (1) the sale of Open Edge equipment should be accounted as financing leases; (2) there were material weaknesses in the Company’s internal controls over financial reporting related to Open Edge transactions; and (3) as a result of the foregoing, the Company’s revenue had been overstated in certain periods.

If you purchased or otherwise acquired Edgio securities, have information, or would like to learn more about this lawsuit and how it might affect your rights, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.

Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

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