FSCT - Gainey McKenna & Egleston Announces a Class Action Lawsuit Has Been Filed Against ForeScout Technologies (FSCT)
NEW YORK, Jan. 03, 2020 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against ForeScout Technologies, Inc (NASDAQ: FSCT) in the United States District Court for the Northern District of California on behalf of those persons who purchased or acquired the securities of ForeScout Technologies between February 7, 2019 and October 9, 2019, inclusive (the “Class Period”). The lawsuit seeks to recover damages for ForeScout Technologies investors under the federal securities laws.
The Complaint alleges that, in February 2019, ForeScout issued a press release that provided fiscal full year 2019 ("FY19") revenue guidance of $363.1 million to $373.1 million, representing year-over-year growth of 24%. Then, the Complaint further alleges that in May 2019, ForeScout raised its FY19 revenue guidance to $365.3 million to $375.3 million. When asked about "deal slippage" the Company was facing, ForeScout assured analysts that "every one of those deals is still in pipeline… [ForeScout] [has] a high degree of confidence [the deals] close for the year…they've just slipped a little bit" and ended by stating "there's still plenty of pipeline to deliver upon the guidance [ForeScout has] given you for the full year."
The Complaint alleges that contrary to these assurances, on October 10, 2019, ForeScout announced disappointing third quarter 2019 financial results that lowered the quarter's revenue guidance to $90.6 million to $91.6 million from $98.8 million to $101.8 million, revealing that the Company was experiencing a material impact from the significant volatility it was facing in closing its large deals.
On this news, ForeScout's stock price fell $14.63 per share, or more than 37%, to close at $24.57 per share.
Investors who purchased or otherwise acquired shares during the Class Period should contact the Firm prior to the March 2, 2020 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.