HARTFORD, Conn., Aug. 13, 2007 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of all persons who purchased the publicly traded securities of Limelight Networks, Inc. ("Limelight") (Nasdaq:LLNW) between June 8, 2007 and August 8, 2007, inclusive (the "Class Period").
The Complaint charges that Limelight, certain of its officers, directors and the co-lead underwriters of its initial public offering ("IPO") violated federal securities laws by issuing a Prospectus in connection with its June 8, 2007 IPO that was materially misleading. Specifically, the Prospectus failed to disclose the following adverse business events: (i) that revenues were suffering due to greater reliance on television-related sales, which are seasonal; and (ii) that Limelight was being forced to resort to deep discounting its services in order to attract and maintain customers for its premier services because of those customers' resistance to paying adequate prices, a development that will impact the Company's June 30, 2007 quarter, and will continue to adversely impact the Company going forward. When the truth about these matters was revealed, Limelight Networks shares dropped substantially.
If you are a member of the class, you may, no later than October 12, 2007, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard P.C. has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website: www.snilaw.com.