A certain kind of law firm reflexively files class action suits whenever stocks drop. Most of the time these suits are pathetic. Some of the time they aren’t. It’s too early to judge whether Limelight’s implosion last week was the result of “knew or should have known” or just incompetence, but the latest volley of suits will probably produce some interesting discovery.
Conference calls / emails we would like to hear about: Those between lead underwriter Goldman Sachs and Limelight’s senior managers about how the second quarter was going just before deal priced. As described last week, Goldman profoundly botched this deal, and it will be interesting to see what yellow flags might have been missed.