New York, New York--(Newsfile Corp. - June 8, 2023) - Scott+Scott Attorneys at Law LLP ("Scott+Scott"), an international shareholder and consumer rights litigation firm, is reminding investors that the deadline to move for lead plaintiff in a securities class action lawsuit against Edgio Inc. (NASDAQ: EGIO) ("Edgio" or the "Company") and certain other defendants (collectively, "Defendants") is June 26, 2023.
The action, which was filed in the U.S. District Court for the Arizona, seeks damages on behalf of a Class consisting of all persons who purchased or otherwise acquired Edgio securities between February 11, 2021 and March 12, 2023, inclusive (the "Class Period").
According to the complaint, throughout the Class Period, Defendants failed to disclose to investors: (1) that the sale of Open Edge equipment should be accounted as financing leases; (2) that there were material weaknesses in the Company's internal controls over financial reporting related to Open Edge transactions; and (3) that, as a result, the Company's revenue had been overstated in certain periods, among other things.
On March 13, 2023, Edgio issued a press release announcing the need to restate its previously issued financial statements for the years ended December 31, 2021 and 2020, as well as the quarterly reports for fiscal 2022 and 2021, because its audit committee "identified an error in the Company's historic accounting treatment of Edgio's Open Edge solution." The Company anticipated the restatements would result in a "reduction to revenue of up to approximately $23.0 million for the nine-month period ended September 30, 2022, up to approximately $16.7 million for the twelve-month period ended December 31, 2021, and up to approximately $6.6 million for the twelve-month period ended December 31, 2020."
On this news, the Company's share price 15.5%.
Lead Plaintiff Deadline
The Lead Plaintiff deadline in this action is June 26, 2023. Any member of the proposed Class may seek to serve as Lead Plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed Class.
What You Can Do
If you purchased Edgio securities during the Class Period, and suffered damages, realized or unrealized, you are encouraged to contact Scott+Scott attorney Jonathan Zimmerman at (888) 398-9312, or [email protected], for more information.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Amsterdam, Connecticut, Virginia, California, and Ohio.
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Original Source of the original story >> INVESTOR ACTION ALERT: Scott+Scott Attorneys at Law LLP Reminds Investors That a Securities Class Action Has Been Filed Against Edgio Inc. (EGIO) Lead Plaintiff Deadline is June 26, 2023