1. Faruqi & Faruqi is investigating claims against Alarum over significant investor losses. 2. Investors with losses over $75,000 must act before April 15, 2025.
The initiation of a federal securities class action often indicates underlying issues that can negatively impact stock performance. Historical examples show similar situations led to declines in stock prices as investor confidence waned.
The looming class action affects investor sentiment and Alarum's public image, which can directly lead to stock price declines.
Ongoing legal investigations usually produce immediate effects on stock prices. The April deadline for plaintiffs adds urgency, likely heightening impact in the near term.