PHOENIX (LN) — A federal judge in Arizona granted preliminary approval on June 8, 2026, to a $15 million settlement in a securities fraud class action against Edgio Inc. and three of its executives, covering investors who bought company stock during a two-year period when the company allegedly misrepresented its business performance.
The settlement, filed unopposed on February 11, 2026, resolves claims that Edgio and defendants Robert A. Lyons, David R. Boncel, and Stephen Cummings violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by making materially false and misleading statements about the company’s projects and artificially inflating its revenue during the February 12, 2021 to March 10, 2023 class period. Lead plaintiff Peter Frouws brought the action on behalf of himself and similarly situated investors who purchased or acquired Edgio common stock during that timeframe.
The proposed settlement represents approximately 10% of the maximum reasonably recoverable damages, according to court documents. U.S. District Judge Diane J. Humetewa certified the settlement class under Rule 23(b)(3), finding that more than 130 million shares were traded by thousands of purchasers during the class period, satisfying numerosity requirements, and that common questions of law and fact—including whether defendants’ statements were false or misleading and whether they acted with scienter—predominate over individual issues.
The settlement resulted from arm’s-length negotiations facilitated by mediator David Murphy of Phillips Alternative Dispute Resolution LLC, with no evidence of fraud or collusion presented to the court. Edgio filed for bankruptcy and was terminated as a defendant on March 17, 2025. The remaining defendants previously sought dismissal based on failure to state a claim, which the court denied.
The settlement hearing is scheduled for September 14, 2026, at 10:00 a.m. Mountain Standard Time at the Sandra Day O’Connor U.S. Courthouse in Phoenix. Class members have until August 7, 2026, to file objections or request exclusion from the settlement. A.B. Data Ltd. will serve as claims administrator, and Huntington National Bank will hold settlement funds in escrow pending final court approval.
Class counsel includes Scott+Scott Attorneys at Law LLP and The Schall Law Firm.