NEW YORK, April 26, 2023 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that it has filed a securities class action in the United States District Court for the District of Arizona on behalf of any person or entity that purchased the securities of Edgio, Inc. (f/k/a Limelight Networks, Inc.) (“Edgio” or the “Company”) EGIO between February 11, 2021 and March 12, 2023, both dates inclusive (the “Class Period”).

The lawsuit alleges that the defendants made materially false and/or misleading statements and failed to disclose material adverse facts about the Company’s business, operations and prospects. Specifically, defendants failed to disclose to investors that: (1) the sale of Open Edge devices should be accounted for as a finance lease; (2) that there were material weaknesses in the Company’s internal controls over financial reporting related to Open Edge transactions; (3) that as a result, the Company’s earnings have been overstated in certain periods; and (4) that as a result of the foregoing, defendants’ positive statements about the Company’s business, operations and prospects were materially misleading and/or lacked any reasonable basis.

On March 13, 2023, prior to the market open, the Company issued a press release announcing that it would restate its previously released financial statements for the fiscal years ended December 31, 2021 and 2020 and quarterly reports for fiscal years 2022 and 2021 because its audit committee “found an error in the company’s historical accounting treatment of Edgio’s Open Edge solution.” The Company estimated that the restatements would result in a “revenue reduction of up to approximately $23.0 million for the nine-month period ended September 30, 2022, up to approximately $16.7 million for the period ended September 31 to approximately $6.6 million for the twelve-month period ended December 31, 2020.” As a result, the company stated that it was unable to continue its…