Class action lawsuit against Limelight.

The Brualdi Law Firm Announces Class Action Lawsuit Against Limelight Networks, Inc.:

The Complaint alleges that defendants, including the Company’s top executives and the co-lead underwriters of its IPO, negligently violated the federal securities laws by issuing a Prospectus in connection with its June 8, 2007 initial public offering (“IPO”) that was materially misleading regarding adverse business events that were affecting the Company, including: (a) that revenues were suffering due to greater reliance on television-related sales, which are seasonal; and (b) that Limelight Networks 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.

Does this lawsuit hold water? I’d like to think so. Unfortunately I don’t have enough legal knowledge to know if it does. I suppose I’m automatically a member of this class:

To be a member of the class you need not take any action at this time, and you may retain counsel of your choice.

Limelight below 10 per share

I bought Limelight on July 20 for $17 per share. It’s been down ever since Akamai reported it’s earnings, which met Analysts expectations BTW. Akamai shares plunged 19% on that day.

So back to Limelight which has reported it’s earnings recently. It’s shares went down after a disappointing third quarter outlook:

Shares of Limelight Networks Inc. on Thursday plunged to their lowest price since the network services provider went public in June, after the company issued a disappointing third-quarter outlook.

It’s still plunging. It’s still tumbling today along with everything else I own. Looks like I’ll be losing on this one.