Alarum Technologies (ALAR) NetNut Illegal Proxy Network Case

Attorneys review the case details to decide whether to proceed with a class action.

D. New Jersey

Court

2:26-cv-09884

Case number

03/20/2025

Class period Start

07/02/2026

Class period End

10/05/2026

Lead Plaintiff motion deadline

$ALAR stockholder filed a claim against Alarum Technologies for touting its NetNut subsidiary's web data collection and proxy network as secure and rigorously validated while concealing that NetNut was linking customers' home internet devices into its network without their consent, enabling cyber criminals to route malicious traffic through them.
After Google and the FBI disclosed a coordinated law enforcement action disrupting NetNut's proxy network over its role in malware operations, followed by Alarum's own disclosure that it was pausing its network services amid an expanding investigation, $ALAR fell a combined 61.6% over four trading days, on July 6, 2026.
$ALAR investors can join this case to be notified about potential recovery.
Case Details:

Between March 20, 2025 and July 2, 2026, Alarum touted its NetNut subsidiary's web data collection and residential proxy network as a key competitive advantage, describing it in SEC filings as secure, rigorously tested, and validated by independent research firms, while its general risk disclosures addressed cybersecurity and legal compliance risks only in the abstract.

However, investors allege NetNut was engaging in illegal activity by linking customers' home internet devices into its proxy network without their consent, a practice that allowed cyber criminals to route malicious traffic through unwitting users' devices while concealing their own identities and locations, materially raising Alarum's legal exposure.

Then, on July 2, 2026, Reuters reported that Google, in partnership with the FBI, had taken coordinated action to disrupt NetNut's proxy network over its use in malware command-and-control operations tied to a botnet, and that the FBI had seized domains associated with NetNut. $ALAR fell 20.8%, closing at $6.35 per share. 

Bloomberg separately reported that the FBI had spent more than a year investigating whether NetNut linked customers' devices into its network without consent. 

Over the following days, Alarum disclosed that additional NetNut domains had been seized and, on July 4, 2026, announced it was temporarily pausing traffic through its network services while it investigated the incident. 

On this news, $ALAR fell an additional 51.5%, closing at $3.08 per share on July 6, 2026.

Based on these events, $ALAR investors filed a claim against Alarum Technologies, alleging the company:
It overstated the security and legitimacy of its NetNut proxy network.
It hid that NetNut was linking customer devices into its network without consent, enabling cybercriminal activity.
It caused investor losses when law enforcement action and its own service disruptions revealed the scope of the problem.
Investors argue Alarum Technologies misled the market about the legality of its NetNut proxy network, causing losses when the truth emerged.

Case Type

US Securities Class Action

Case Status

Attorney Investigation

Alleged Offence

Fraud,

Failure to Disclose

Suspected Party

Directors,

Management

Security Type

Depository Securities (ADS, ADR, GDR)

Trade Direction

Long

Shock Event Date

07/02/2026

Filing date

08/05/2026

Lead Plaintiff Deadline

10/05/2026