This issue is related to setup of following speakers

- Classic Live
- Classic Lounge

Issue solved in Libratone App version 4.0.3 released February 22, 2016. 

Alternative setup procedure

Set up the speaker using its web interface.

1. Open Wi-Fi settings on your iPhone/iPad/Mac/PC and connect to the Libratone network (Libratone XXXXXX)
2. Start your internet browser
3. Enter 192.168.1.1 in the URL and press Enter
4. Choose your home network and enter the password
5. Press “Apply settings”
6. Speaker will restart and pulse WHITE when connected