F5(US:FFIV) Prnewswire·2025-12-26 15:16Core Viewpoint - The complaint alleges that F5 and its executives violated federal securities laws by making misleading statements regarding the company's security capabilities, particularly in light of a significant security breach affecting key offerings [2][3]. Financial Impact - On October 27, 2025, F5 reported fourth quarter fiscal year 2025 results that fell significantly below market growth expectations for fiscal 2026, primarily due to the security breach. The company anticipated reductions in sales and renewals, elongated sales cycles, terminated projections, and increased expenses for remediation efforts [3]. - The security breach involved BIG-IP, F5's highest revenue product, amplifying the financial impact of the breach on the company's overall revenue [3]. Stock Market Reaction - Following the announcement of the security breach and disappointing financial results, F5's stock price dropped from $290.41 per share on October 27, 2025, to $258.76 per share on October 28, 2025, marking a decline of 10.9% within two days [4].