Fortinet Co-Founders, Brass Sued Over Growth Miss, Stock Sales

Fortinet Inc.'s leadership breached its duties to the cybersecurity company by exaggerating the revenue potential of a firewall upgrade, an investor alleges on behalf of the company.

Brothers Ken and Michael Xie, who founded Fortinet and serve as CEO and chief technology officer, respectively, sold stock for proceeds of more than $134 million total while the share price was artificially inflated, Jack Pittrof says. The shareholder filed his derivative suit Wednesday in the US District Court for the Northern District of California.

Pitroff also alleges the chief financial officer and a board member engaged in insider sales.

The harm to ...