KO&L LLP FILES SECURITIES CLASS ACTION LAWSUIT AGAINST LIMELIGHT NETWORKS, INC.
KO&L has filed a securities class action complaint against Limelight Networks, Inc. (“Limelight” or the “Company”) (NASDAQ: LLNW) and certain of its officers in the U.S. District Court for the Southern District of New York (Civil Action No. 07-CIV-7394) on behalf of investors who purchased the common stock of Limelight during the period June 8, 2007 through August 8, 2007 (the “Class Period”).
The Complaint alleges that defendants, including the Company’s top executives and the co-lead underwriters of Limelight’s initial public offering (“IPO”), Goldman, Sachs & Co., and Morgan Stanley & Co., violated the federal securities laws by issuing a materially misleading Registration Statement and Prospectus in connection with Limelight’s June 8, 2007 IPO. Specifically, the Complaint alleges that the Registration Statement and Prospectus: (i) omitted that Limelight was experiencing a seasonal decline in sales in June and misrepresented that the Company had not “identified any seasonal fluctuations in [its] quarterly results”; and (ii) did not warn investors that Limelight had already been forced to heavily discount its service offerings and even had to walk away from sales because the requested discounts were too great thereby adversely impacting Limelight’s business in the second quarter and beyond. When the truth about these matters was revealed before the market opened on August 9, 2007, Limelight Networks shares plummeted nearly 40% on more than seven times its average volume. Limelight’s shares have not recovered.
