Great briefing. The Fortinet securities fraud claims are definitely a red flag for investors, that 22% stock drop after the firewall refresh cycle misrepresentation is brutal. The timing of the CEO and CTO insider sales before the announcement looks realy bad from an optics standpoint. What interests me tho is that despite all this legal drama the stock was still up 0.7% on Monday, seems like the market is viewing this as more of a communications issue rather than a fundamental business problem. The steady network security demand you mentiond is probably providing a floor for the stock. Still, this kind of securities litigation can drag on for years and create overhang.
Great briefing. The Fortinet securities fraud claims are definitely a red flag for investors, that 22% stock drop after the firewall refresh cycle misrepresentation is brutal. The timing of the CEO and CTO insider sales before the announcement looks realy bad from an optics standpoint. What interests me tho is that despite all this legal drama the stock was still up 0.7% on Monday, seems like the market is viewing this as more of a communications issue rather than a fundamental business problem. The steady network security demand you mentiond is probably providing a floor for the stock. Still, this kind of securities litigation can drag on for years and create overhang.