Fortinet(US:FTNT) Globenewswireยท2025-10-15 20:45Core Viewpoint - A class action lawsuit has been filed against Fortinet, Inc. for alleged misrepresentations regarding the company's product refresh cycle and its impact on business performance, leading to significant losses for investors who purchased shares during the specified period [7]. Allegation Details - The lawsuit claims that Fortinet's management misrepresented the potential profitability of the product refresh cycle, stating it would be lucrative despite it involving old products that constituted a "small percentage" of the company's business [7]. - It is alleged that Fortinet concealed the uncertainty regarding the number of FortiGate firewalls eligible for upgrades and misled investors about the momentum of the refresh cycle [7]. - On August 6, 2025, Fortinet disclosed that it was only "approximately 40% to 50% of the way through the 2026 upgrade cycle" by the end of Q2 2025, contradicting earlier statements [7]. - The lawsuit also highlights that Fortinet admitted difficulties in predicting the total number of FortiGates needing upgrades and acknowledged that customers had excess firewall capacity from previous purchases, which reduced the necessity for upgrades [7]. - Following the earnings call, Fortinet's stock price dropped over 22%, reflecting the negative market reaction to the revelations [7]. Next Steps - Investors who acquired Fortinet shares during the class period and suffered losses are encouraged to contact the law firm Bragar Eagel & Squire for more information and to discuss their legal rights [4].