PHILADELPHIA, Aug. 21, 2007 (PRIME NEWSWIRE) -- Law Offices Bernard M. Gross, P.C. announces that a class action lawsuit has been commenced in the United States District Court for the District of Arizona, Civil Action No. 07-01603, on behalf of purchasers of the common stock of Limelight Networks, Inc. (Nasdaq:LLNW) (LLNW) in its initial public offering on June 8, 2007 and thereafter up to August 8, 2007, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Act of 1933 (the "Securities Act").
If you wish to serve as lead plaintiff, you must move the Court no later than October 14, 2007. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Deborah R. Gross or Susan R. Gross at 866-561-3600 or 215-561-3600 or via email at debbie@bernardmgross.com or susang@bernardmgross.com. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges LLNW, Goldman Sachs & Co., Morgan Stanley & Co., Jeffrey Lundsford, Nathan Raciborski, Michael Gordon and William Rinehart with violations of Sections 11 and 12 of the Securities Act, by issuing a materially false and misleading Registration Statement and Prospectus. Defendants sold over 16 million shares of LLNW common stock and failed to disclose that the market for CDN services was mature, seasonal and experiencing severe pricing pressures which would cause LLNW to sustain increasing losses in Q2 2007.
On August 9, 2007, LLNW surprised the market and announced a staggering net loss for the second quarter of $10.46 million compared to a net loss of $4.7 million in the previous quarter. In response to this announcement, the price of LLNW common stock declined from its offering price of $15 per share to close at $7.94 per share on August 10, 2007 on extremely heavy trading volume.
Plaintiff seeks to recover damages on behalf of all those who purchased the common stock of LLNW in the IPO from June 8, 2007 - August 8, 2007. The plaintiff is represented by Law Offices Bernard M. Gross P.C., a Philadelphia law firm, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
This firm also recently filed a securities class action against RAIT FINANCIAL TRUST, (RAS-NYSE) , class period, 01/10/07 - 07/31/07; Radian Group, Inc., (RDN-NYSE), class period, 01/23/07 - 07/31/07.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca