Legal Woes

It's going to be a nasty old day for Limelight (LLNW) with two of the recently threatened class action suites filed this morning in Pennsylvania and Oklahoma. This company, one third owned by Goldman Sachs IPOed recently and almost immediately fell into the red and issued a forecast warning.

Separately, they are already in dispute with Akamai concerning patents and have lost the Myspace account that must be worth at least half a million dollars, by my very back-of-the-fagpack calculations. It may be worth four or five times this. Ouch.

Whatever the merits of these cases, I just hope that the litigiousness of the US legal system does not undermine the growth of the market and actually destroy value for shareholders.

As the old joke goes, "what's the difference between a dead skunk in the middle of the road and a dead lawyer in the middle of the road ?

"There are skid marks in front of the skunk..."