SAN DIEGO, May 12, 2023 (GLOBE NEWSWIRE) — Robbins LLP is reminding investors that a shareholder has filed a class action lawsuit on behalf of all individuals and entities that have purchased or otherwise acquired Edgio, Inc. EGIO between May 11, 2021 and March 12, 2023. Edgio provides software solutions for businesses. Edgio’s services include digital content delivery, online video delivery, cloud security, edge computing, cloud storage and professional services. On June 16, 2022, the company changed its name from Limelight Networks, Inc. to Edgio, Inc.

What is it about in this case: Edgio, Inc. (EGIO) demonstrated significant weaknesses in its internal controls over financial reporting

According to the lawsuit, the defendants failed to disclose to investors during the class action lawsuit that (1) the sale of Open Edge devices should be accounted for as a finance lease; (2) there were significant deficiencies in the Company’s internal controls over financial reporting related to Open Edge transactions; and (3) as a result, the company’s earnings have been overstated in certain periods.

On March 13, 2023, Edgio issued a press release announcing that it will amend its previously released financial reports for the years ended December 31, 2021 and 2020, and quarterly reports for fiscal years 2022 and 2021, as its Audit Committee “identifies identified an error in the Company’s historical accounting treatment of Edgio’s Open Edge solution.” The Company estimated the adjustments would result in a revenue decrease of up to approximately $23.0 million for the nine-month period ended March 30 As a result, the Company announced that it could not submit its annual report on time. As a result of this news, the company’s share price fell $0.1597, or 15.5%, to close at $0.8703 per share on March 13, 2023.

What now: Shareholders in a similar position…