Fortinet(US:FTNT) Globenewswire·2025-10-25 17:05Core 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 [7]. Allegation Details - The lawsuit claims that Fortinet's management misled investors about the profitability of the refresh cycle, stating it would be lucrative when it was actually based on outdated products that represented a small portion of the business [7]. - It is alleged that Fortinet did not have a clear understanding of the number of FortiGate firewalls eligible for upgrades and misrepresented the momentum of the refresh cycle, which was pushed through rapidly in a short time frame [7]. - On August 6, 2025, Fortinet disclosed during an earnings call that it was only 40% to 50% through the 2026 upgrade cycle, contradicting previous statements about the refresh's potential impact [7]. Impact on Stock Price - Following the revelations during the earnings call, Fortinet's stock price dropped by more than 22%, indicating a significant market reaction to the disclosed information [7].