1. A class action lawsuit has been filed against Fortinet for potential securities violations. 2. The lawsuit alleges breaches of the Securities Exchange Act which could impact FTNT's reputation.
Class action lawsuits often lead to negative investor sentiment and price drops, historically affecting stock values, such as with other tech firms facing similar issues.
Legal proceedings against FTNT may hinder investor confidence and create volatility, making it a significant development.
Immediate effects are likely as investors react to legal news; prior cases show quick stock price reactions to litigation announcements.