F5(US:FFIV) Businesswire·2025-12-23 17:32Core Viewpoint - A securities fraud class action lawsuit has been filed against F5, Inc. due to a significant security breach that led to unauthorized access to company systems and resulted in substantial financial losses for investors [1][5]. Group 1: Incident Details - On October 15, 2025, F5 disclosed that a "highly sophisticated nation-state threat actor" had gained unauthorized access to certain company systems, including the BIG-IP product development environment [2]. - The breach resulted in the exfiltration of files, including portions of the BIG-IP source code and information about undisclosed vulnerabilities [2]. - Following the announcement, F5's stock price dropped by $35.40, or 10.7%, closing at $295.35 per share on October 16, 2025 [2]. Group 2: Financial Impact - On October 27, 2025, F5 released its fourth quarter fiscal 2025 financial results, indicating low growth expectations for fiscal 2026 due to the security breach [3]. - The company anticipated reductions in sales and renewals, elongated sales cycles, terminated projections, and increased expenses related to ongoing remediation efforts [3]. - As a result of this news, F5's stock price fell by $22.83, or 7.8%, closing at $267.58 per share on October 28, 2025 [4]. Group 3: Lawsuit Allegations - The class action lawsuit alleges that F5's management made materially false and misleading statements and failed to disclose adverse facts about the company's business and operations during the class period [5]. - Specifically, it is claimed that F5 did not inform investors about the significant security incident, which posed risks to its clientele's security and the company's future prospects [5]. - The lawsuit argues that the positive statements made by the defendants regarding the company's business lacked a reasonable basis at all relevant times [5].