#United States #San Francisco #Wolf Haldenstein #Fortinet #stock drop

Fortinet Shareholders Alert

Wolf Haldenstein Adler Freeman & Herz LLP is reaching out to investors who experienced financial losses due to the recent downturn in Fortinet, Inc.'s stock prices. The firm reminds affected shareholders that a class action lawsuit has been initiated against Fortinet, Inc. (NASDAQ: FTNT) in the Northern District of California, focusing on several alleged violations concerning the Securities Exchange Act. This article provides crucial information regarding the claims, the circumstances surrounding the case, and the next steps for shareholders seeking to recover losses.

Background of the Lawsuit

The timeline of this class action lawsuit covers a specific period from November 8, 2024, to August 6, 2025. The defendants named in the case include Fortinet and its senior executives. The core of the allegations revolves around misleading statements made by the company, which claimed they were embarking on the largest firewall refresh cycle ever, projecting sales growth and new opportunities for their products. However, the lawsuit argues that Fortinet's claims regarding product upgrades and revenue potential were not accurate.

What Led to the Class Action?

In 2023 and 2024, Fortinet reported slowing product growth, prompting them to announce an ambitious refresh cycle for their FortiGate firewalls. Executives projected product revenue between $400 million and $450 million for the fiscal years 2025-2026, even claiming that the refresh would create a wave of demand and paving the way for cross-selling opportunities in the second half of 2025.

However, according to the class action, these assertions were misleading. Key points raised in the suit include:

• - The refresh primarily involved older products, constituting only a small segment of Fortinet's overall business.
• - There was insufficient transparency on how many existing firewalls were actually eligible for upgrades.
• - By the second quarter of 2025, Fortinet had already completed approximately 50% of the refresh, which contradicted their claims about future momentum.

The Stock Price Impact

On August 6, 2025, the situation took a turn during Fortinet's earnings call for the second quarter, revealing that the upgrade cycle was much further along than previously communicated. Customers were informed that they had excess firewall capacity, thus negating immediate needs for upgrades. This disclosure indicated that a substantial portion of the refresh pertained to products that were more than 12 years old.

The aftermath of this earnings call was a sharp decline in Fortinet's stock price, which fell by 22% from $96.58 to $75.30 the following day, August 7, 2025. This dramatic downturn has left many shareholders in financial distress and looking for recourse.

Next Steps for Investors

Investors who identify with these claims and have incurred losses due to Fortinet's stock drop are encouraged to take action. They can join the class action suit by contacting Wolf Haldenstein before November 21, 2025. This is an opportunity for shareholders to seek appointment as lead plaintiffs, which could enhance their chances for financial recovery.

Why Choose Wolf Haldenstein?

The law firm Wolf Haldenstein, established in 1888, brings over 125 years of experience in securities litigation and has a strong reputation for fighting for the rights of investors. They have a proven track record in handling complex cases and aim for justice for all affected parties.

If you are an investor impacted by the claims against Fortinet, or if you have any information that may aid in the investigation, the firm is ready to assist. Contact them at:

• - Phone: (800) 575-0735 or (212) 545-4774
• - Email: [email protected]

In conclusion, investors must stay informed and act promptly concerning this critical legal matter. The situation surrounding Fortinet serves as an essential reminder of the importance of transparency and accountability in corporate communications.