Fortinet(US:FTNT) Globenewswire·2025-10-16 21:49Core Viewpoint - Fortinet, Inc. is facing a class action lawsuit for alleged violations of the Securities Exchange Act of 1934, with claims that the company misled investors regarding its product upgrade cycle and revenue expectations [1][3]. Company Overview - Fortinet is described as a leader in cybersecurity, providing a range of hardware and software products, with its flagship product being the FortiGate firewall [2]. Allegations of the Lawsuit - The lawsuit alleges that Fortinet failed to disclose critical information about the forced upgrade cycle of its FortiGate firewalls, including: - The number of units subject to the upgrade was smaller and included more low-end units than represented [3]. - The age and cost of certain devices in the upgrade cohort would not significantly impact current revenues [3]. - Fortinet lacked necessary data on end users to assess the impact of the end-of-service event in 2026 [3]. - The 2026 forced upgrade cycle had progressed significantly during the second half of 2024 and the first half of 2025 [3]. - Without customer upgrades, Fortinet's reported product sales would have been flat or negative [3]. - The 2026 forced upgrade cycle would not be a meaningful growth driver for the second half of 2025 and 2026 [3]. Impact of the Allegations - On August 6, 2025, Fortinet disclosed that the 2026 forced upgrade cycle was already 40%-50% complete as of June 30, 2025, contradicting prior investor expectations [4]. - Following this revelation, Fortinet's stock price fell by more than 22% [4]. Legal Process - Investors who purchased Fortinet common stock during the class period can seek appointment as lead plaintiff in the lawsuit, which allows them to act on behalf of other class members [6]. Law Firm Background - Robbins Geller Rudman & Dowd LLP is representing the plaintiffs and has a strong track record in prosecuting investor class actions, having recovered over $2.5 billion for investors in 2024 alone [7][8].