The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements concerning the business impact and sustainability of a purportedly “record” round of FortiGate unit upgrades. Defendants represented that this “refresh cycle” was “by far the largest we’ve seen probably ever,” would generate “around $400 million to $450 million in product revenue” in 2025 and 2026, and would create strong opportunities to cross-sell additional products and services. Defendants also represented that the refresh cycle would “gain momentum” in the second half of 2025 and beyond.
These statements were materially false and misleading. In truth, defendants knew that the refresh cycle would never be as lucrative as they represented because it consisted of old products that were a “small percentage” of the Company’s business. Moreover, defendants misrepresented and concealed that they did not have a clear picture of the true number of FortiGate firewalls that could be upgraded. And while telling investors that the refresh would gain momentum over the course of two years, Fortinet misrepresented and concealed that it had aggressively pushed through roughly half of the refresh in a period of just a few months, by the end of 2Q 2025.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
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