Lawsuit filed for Investors who lost money with shares of Fortinet, Inc. (NASDAQ: FTNT)

An investor, who purchased shares of Fortinet, Inc. (NASDAQ: FTNT), filed a lawsuit over alleged violations of Federal Securities Laws by Fortinet, Inc. in connection with certain allegedly false and misleading statements.

Investors who purchased shares of Fortinet, Inc. (NASDAQ: FTNT) have certain options and for certain investors are short and strict deadlines running. Deadline: November 21, 2025. NASDAQ: FTNT investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Sunnyvale, CA based Fortinet, Inc. provides cybersecurity and convergence of networking and security solutions worldwide. During the COVID-19 pandemic, many companies shifted employees to remote work which caused a surge in demand for Fortinet's products.

In 2023 and the first half of 2024, Fortinet's product revenue growth slowed.

Fortinet, Inc. (NASDAQ: FTNT) reported that its annual Total Revenue rose from over $5.3 billion in 2023 to over $5.95 billion in 2024, and that its Net Income from over $1.14 billion in 2023 to over $1.65 billion in 2024.

However, beginning in the second half of 2024, the Company began to tell investors that it was seeing signs of recovery in the firewall market and that it expected the next "refresh" cycle to begin in 2025.

On August 6, 2025, during the Company's 2Q 2025 earnings call, the company revealed that Fortinet was already "approximately 40% to 50% of the way through the 2026 upgrade cycle at the end of the second quarter [of 2025]." Also on the call, the company: (i) acknowledged that "it's hard[] for us to predict" the total number of FortiGates requiring an upgrade; (ii) stated that customers had "excess [firewall] capacity from [purchasing firewalls in] prior years" and therefore did not need to upgrade; and (iii) revealed 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.

Shares of Fortinet, Inc. (NASDAQ: FTNT) declined from $114.82 per share on February 18, 2025, to as low as $75.00 per share on September 02, 2025.

The plaintiff claims that between November 8, 2024 and August 6, 2025, the 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, that the 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, and that the defendants misrepresented and concealed that they did not have a clear picture of the true number of FortiGate firewalls that could be upgraded.

Those who purchased shares of Fortinet, Inc. (NASDAQ: FTNT) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.