Forescout Technologies Inc. $45M Securities Settlement

Consumers who purchased or otherwise acquired Forescout Technologies Inc. common stock between May 10, 2019, and May 15, 2020, may qualify to claim a cash payment from a class action settlement.

Forescout Technologies Inc. agreed to pay $45 million to resolve a class action lawsuit alleging the company and certain executives made false or misleading statements about its sales pipeline, financial performance and planned merger with Advent International Inc.

Who can file a Forescout Technologies claim?

• Class members are both individuals and entities who purchased or otherwise acquired Forescout Technologies Inc. common stock between May 10, 2019, and May 15, 2020, and suffered damages as a result.
• Shares acquired through gift, inheritance or operation of law are not eligible.

How much can class members receive?

Pro rata payment: The average recovery is estimated to be about $1.18 per eligible share before deductions for attorneys’ fees, expenses and awards. The actual amount each claimant receives depends on:

• The number of valid claims submitted
• The number of shares they purchased or acquired and sold during the class period
• The timing and price of their purchases and sales
• The total number of eligible shares claimed

The plan of allocation uses a formula based on when class members bought, sold and held Forescout shares and the price inflation attributed to alleged misstatements. Recognized claims are calculated as follows:

• For class members who sold their shares before Oct. 10, 2019, the recognized claim is $0.
• For class members who sold their shares between Oct. 10, 2019, and May 15, 2020, the recognized claim is the difference in price inflation between their purchase and sale dates.
• For class members who sold during the 90-day lookback period (May 18, 2020, to Aug. 13, 2020), the recognized claim is the lesser of the difference in price inflation or the purchase price minus the 90-day lookback value.
• For class members who held shares as of Aug. 13, 2020, the recognized claim is the lesser of the price inflation at purchase or the purchase price minus $25 (the average closing price during the 90-day lookback period).
• Shares purchased between May 12, 2020, and May 15, 2020, will have their recognized claim increased by 50% due to the proximity to the alleged corrective disclosure.
• There will be no distribution for claims less than $10.

How to claim a class action rebate

Class members can file a claim online or download, print, complete and mail the PDF claim form to the settlement administrator. They may also request a claim form by contacting the settlement administrator. The claim form deadline is Dec. 1, 2025.

Settlement administrator's contact information: Sayce v. Forescout Technologies Inc., et al., c/o Strategic Claims Services, P.O. Box 230, 600 N. Jackson St., Suite 205, Media, PA 19063, 866-274-4004, info@forescoutsecuritieslitigation.com.

What proof or documentation is required to submit a claim?

Class members must provide genuine and sufficient documentation for all transactions and holdings of Forescout common stock. Acceptable documentation includes:

• Brokerage confirmation slips
• Monthly brokerage account statements
• Authorized statements from a broker containing the required information

Failure to provide documentation may result in claim rejection.

Class members who submit a valid claim will receive acknowledgement by mail or email within 60 days of their submission. Those who do not receive communication should contact the settlement administrator using the information above.

Payout options

• Paper check

$45 million settlement fund breakdown

The $45,000,000 settlement fund covers:

• Settlement administration costs: $250,000 prior to settlement approval
• Attorneys' fees: Up to $15,000,000
• Attorneys' expenses: Up to $2,500,000
• Service awards to class representatives: Up to $50,000 each ($100,000 total)
• Taxes and related expenses: To be determined
• Payments to eligible class members: The remainder of the fund

Important dates

• Deadline to file a claim: Dec. 1, 2025
• Fairness hearing: Dec. 5, 2025

When is the Forescout Technologies Inc. settlement payout date?

The settlement administrator will mail payments to class members after the court grants final approval of the settlement and resolves any appeals.

Why is there a class action settlement?

The class action lawsuit alleged Forescout Technologies Inc. and certain executives violated federal securities laws by making false or misleading statements about the company's sales pipeline, financial performance and planned merger with Advent International Inc. The plaintiffs claimed these misrepresentations caused investors to pay artificially inflated prices for Forescout stock.

The defendants denied all allegations but agreed to settle to avoid the burden, expense and risk of continued litigation.

Sources

1. Class notice
2. Settlement agreement
3. Claim form