Fortinet(US:FTNT) Globenewswire·2025-10-14 16:52Core Viewpoint - Fortinet, Inc. is facing a class action lawsuit due to alleged misleading statements regarding its business operations and financial performance during the Class Period from November 8, 2024, to August 6, 2025 [1][4]. Financial Performance - On August 6, 2025, Fortinet reported its Q2 2025 financial results, indicating that it was "approximately 40% to 50% of the way through the 2026 firewall upgrade cycle" [2]. - The company provided weaker-than-expected revenue guidance for Q3 2025, projecting revenue between $1.67 billion and $1.73 billion [2]. Stock Price Impact - Following the release of the financial results, Fortinet's stock price dropped by $21.28, or 22%, closing at $75.30 per share on August 7, 2025 [3]. Allegations in the Lawsuit - The lawsuit claims that Fortinet's management made materially false and misleading statements and failed to disclose adverse facts about the company's business and prospects [4]. - Specific allegations include: - Misrepresentation of the profitability of the refresh cycle, which was said to consist of old products that were a "small percentage" of the business [4]. - Lack of clarity regarding the number of FortiGate firewalls eligible for upgrades [4]. - Misleading investors about the momentum of the refresh cycle, which was pushed through more quickly than communicated [4]. - Overall, the positive statements made by the company were deemed materially misleading and lacked a reasonable basis [4]. Legal Action Details - Investors who purchased Fortinet common stock during the Class Period can file a lead plaintiff motion by November 21, 2025 [5].