Forescout Technologies ($FSCT) Investor Settlement
Forescout Technologies has reached a settlement with $FSCT investors over claims that it misled the market about the strength of its sales pipeline and the likelihood of closing key deals ahead of its planned acquisition.
Outline:
Forescout Technologies announced plans to be acquired by Advent International in 2020. Investors later alleged the company overstated the strength of its sales pipeline and business performance. After several large deals failed to close and the merger was terminated, the stock declined sharply. Investors filed suit and Forescout later agreed to a settlement.
Timeline:
February 6, 2020: Forescout announced a $1.9 billion acquisition agreement with Advent International.
May 18, 2020: Forescout disclosed that Advent was terminating the merger agreement due to performance concerns.
May 19, 2020: $FSCT declined nearly 24% following the announcement.
June 17, 2020: Investors filed a securities class action lawsuit.
June 2025: Forescout reached a settlement to resolve the claims.
Background:
Forescout Technologies is a cybersecurity company that provides network security and device visibility solutions. In early 2020, the company agreed to be acquired by private equity firm Advent International in a transaction valued at approximately $1.9 billion.
During this period, Forescout told investors that its business performance remained strong and that its sales pipeline supported future growth. Investors later alleged the company overstated the strength of its pipeline and the likelihood that certain large deals would close.
In May 2020, Forescout disclosed that Advent International intended to terminate the merger agreement, citing concerns about the company’s business performance. The announcement raised questions about the accuracy of the company’s earlier statements.
Following the disclosure and the decline in $FSCT’s stock price, investors filed a securities class action alleging that Forescout’s statements about its sales pipeline and business outlook were misleading.
What Can Investors Expect Now?
Forescout Technologies agreed to a settlement with $FSCT investors to resolve claims that it misled them about the strength of its sales pipeline and the likelihood of closing key deals ahead of its planned acquisition.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section.
Frequently Asked Questions
All persons and entities who purchased or otherwise acquired Forescout Technologies common stock between May 10, 2019 and May 15, 2020, inclusive, and were damaged thereby.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
If you're eligible, you can file your claim directly from this case page by clicking the "Collect Payout" button.
More than 100 companies are currently paying out settlements. Connect your brokerage account to automatically check which ones you may have missed — or file manually for this case.
11th.com is an investor recovery company that helps investors track and collect securities class action settlements. We will:
1. Prepare documents for your payout.
2. Audit the claim and make sure you get the maximum possible payout.
3. File a claim with the settlement administration.
4. Correspond with the settlement administration to resolve emerging issues.
5. Deliver payout directly to your brokerage account.
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.