Fortinet(US:FTNT) Businesswire·2025-11-06 01:00Core Viewpoint - Fortinet, Inc. is facing a class action lawsuit alleging securities fraud due to misleading statements about the company's product upgrade cycle and revenue expectations [3][4]. Group 1: Lawsuit Details - The class action lawsuit is on behalf of investors who purchased Fortinet securities between November 8, 2024, and August 6, 2025 [3]. - Allegations include that Fortinet's management made materially false statements regarding a "record" round of FortiGate unit upgrades, claiming it would generate $400 million to $450 million in product revenue for 2025 and 2026 [3]. - The lawsuit asserts that the management misrepresented the upgrade cycle's potential, stating it would gain momentum in the second half of 2025, while in reality, it was not as lucrative as claimed [3]. Group 2: Financial Impact - On August 6, 2025, Fortinet reported that it was only "approximately 40% to 50% of the way through" the 2026 firewall upgrade cycle, which was below investor expectations [4]. - Following the release of weaker-than-expected revenue guidance for the third quarter, Fortinet's share price dropped by $21.28, or approximately 22%, from $96.58 to $75.30 [4]. Group 3: Investor Actions - Investors have until November 21, 2025, to request the Court to appoint them as lead plaintiff in the class action lawsuit [2]. - Interested investors are encouraged to contact Kirby McInerney LLP for more information regarding their rights or interests in the lawsuit [5].