Forescout Faces Reinstated Investor Suit Over Sales, Merger (1)

Forescout Technologies Inc. investors can proceed with part of their suit alleging the cybersecurity company misled them about the health of its sales pipeline, a possible merger, and other issues, the Ninth Circuit ruled Thursday.

The investors adequately pleaded the falsity and level of intent necessary to maintain securities fraud claims focused on five company statements, Judge Carlos T. Bea said in an opinion joined by Judge Jacqueline H. Nguyen.

In a partial dissent, Judge Michael Daly Hawkins said he would have allowed claims based on only one of the statements to proceed. The lower court had dismissed the ...