Forescout Settles Investor Revenue, Merger Suit for $45 Million

Forescout Technologies Inc. has agreed to pay $45 million to settle an investor class action alleging the cybersecurity company misrepresented its sales pipeline and the prospects of a merger.

The proposed settlement in the five-year-old case “easily meets the standard for preliminary approval,” the lead investors told the US District Court for the Northern District of California on July 18. It represents 11% of the plaintiffs’ estimate of about $410 million in maximum recoverable damages, they said.

The suit concerns the lead-up to the 2020 announcement of a possible merger with private equity firm Advent International Corp. and the rocky ...