Fortinet, Inc. Securities Lawsuit Investigation

Shamis & Gentile P.A., a law firm that advocates for investors who are victims of securities fraud, is investigating potential claims against Fortinet, Inc. (FTNT).

If you purchased or held Fortinet securities and suffered losses, you may be eligible to join this securities investigation and seek compensation.

About Fortinet

Fortinet, Inc. is a leading provider of cybersecurity solutions, offering products and services designed to protect organizations from digital threats. The company is known for its firewall appliances, security software, and network protection technologies that serve a global customer base.

Potential Concerns Under Investigation

Lawyers are investigating a significant drop in Fortinet’s stock price on Aug. 7, 2025. On that day, Fortinet shares plunged approximately 25 percent, falling from about $96 to $70.93 in a single session. This 26.5 percent one-day decline wiped out billions in market value, with estimates suggesting losses exceeding $2.5 billion for investors.

The investigation may focus on disclosures made during Fortinet’s Q2 2025 earnings announcement on Aug. 6, 2025. During the earnings call, CFO Christiane Ohlgart revealed for the first time that the company’s firewall refresh cycle was “approximately 40 percent to 50 percent…of the way through” its 2026 upgrade at quarter end: a detail that had not previously been shared with investors. This admission seemingly contradicted earlier market assumptions about ongoing growth opportunities tied to the firewall refresh and potentially triggered concerns about the company’s future revenue prospects.

At the same time, Fortinet issued weaker-than-expected revenue guidance for Q3 2025, projecting revenue between $1.67 billion and $1.73 billion. Analysts responded swiftly, with several major Wall Street firms downgrading the stock and citing disappointment over the firewall refresh disclosure. Morgan Stanley’s Keith Weiss, for example, noted that the revelation about the firewall refresh being largely complete was a key reason for his downgrade. The timing of these disclosures and analyst reactions directly coincided with the stock’s steep decline.

Legal professionals may examine whether Fortinet’s prior statements about growth, product demand, and billings guidance were misleading or incomplete. For example, CEO Ken Xie stated in the Q2 release, “continued innovation and customer-first strategy have] enabled us to beat our billings guidance… and raise our full year billings outlook,” which may have implied ongoing growth while omitting the critical fact that the firewall upgrade campaign was already nearly half complete. Additionally, [Fortinet announced it “raised [its] 2025 full year billings guidance midpoint by $100 million” without disclosing that the key growth driver was waning.

Attorneys may review whether Fortinet’s optimistic commentary and guidance failed to provide investors with material information about the actual status of the firewall refresh, potentially making those statements misleading by omission. The investigation could also look at whether SEC filings and earnings call transcripts contained similar omissions regarding product sales growth and the refresh cycle.

The investigation may also assess the scale of investor harm. The estimated $25 per share drop on Aug. 7, 2025, could represent substantial losses for investors who purchased or held shares during the relevant period. Depending on the number of shares affected, aggregate damages could reach into the billions.

Your Rights and Next Steps

Investors who bought or held Fortinet securities between May 7, 2025, and Aug. 6, 2025, and suffered financial losses may have legal rights in connection with this investigation. It is important to understand that this is currently an investigation, not a filed lawsuit. However, if evidence supports potential securities law violations, a class action lawsuit could follow.

Lawyers are ready to help investors determine whether they may have claims for compensation based on possible misrepresentations, omissions, or other conduct that may have harmed shareholders. Investors are encouraged to gather records of their Fortinet transactions and monitor updates as the investigation progresses.

If a class action is filed, eligible investors may have the opportunity to participate as class members and seek recovery for their losses. Participation in a class action does not require taking on the burden of leading the case; rather, investors can submit a claim and potentially receive compensation if the case is successful.

You May Be Entitled to Compensation

Securities investigations are time sensitive. If you purchased or held Fortinet securities and suffered losses, you may be eligible to join any potential class action and seek compensation for your losses.

To protect your rights and learn more about your options, complete the form below to join the investigation.