Edgio Investors Advance Suit Claiming Inflated Sales Pipeline

Edgio Inc. investors can proceed with a proposed securities fraud class action claiming the technology company misrepresented its revenue before restating its financials, a federal court ruled.

The investors adequately alleged the video streaming delivery service made false or misleading statements about its sales pipeline related to a new area of software offerings, Judge Diane J. Humetewa said Monday for the US District Court for the District of Arizona. They also successfully pleaded that three top executives—who remain as defendants after Edgio filed for bankruptcy protection in September 2024—acted intentionally or recklessly in making statements about internal controls, a pipeline ...