Archived Investigations
Fortinet Inc. (NasdaqGS: FTNT)
Fortinet and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On August 6, 2025, the Company disclosed it was already “approximately 40% to 50% of the way through the 2026 upgrade cycle at the end of the second quarter [of 2025].” Further, the Company disclosed that: (i) “it’s hard[] for us to predict” the total number of FortiGates requiring an upgrade; (ii) that customers had “excess [firewall] capacity from [purchasing firewalls in] prior years” and therefore did not need to upgrade; and (iii) that the refresh could not have had “much business impact” as it consisted of only a “small percentage” of the Company’s business because the products were “12 to 15 years old” and had been sold at a time when Fortinet’s business was 5-10 times smaller.
On this news, the price of Fortinet’s shares fell $21.28 per share, or more than 22%, from $96.58 per share on August 6, 2025, to $75.30 per share on August 7, 2025.
The case is Oklahoma Firefighters Pension and Retirement System v. Fortinet, Inc., et al., No. 25-cv-08037.