Key Takeaways:
Robbins LLP filed a securities class action against Alarum Technologies (NASDAQ: ALAR) for purchases from March 20, 2025 to July 2, 2026.
"Investors who suffered losses in Alarum should contact us directly to discuss their options," James (Josh) Wilson, securities litigation partner at Faruqi & Faruqi, said.
The lawsuit alleges Alarum made false and misleading statements and failed to disclose that its subsidiary NetNut was engaging in illegal activity by linking customer home internet devices into another network without consent, according to the complaint. This activity allowed cyber criminals to conceal their locations, materially heightening the company's legal exposure and threatening its business prospects.
On July 2, 2026, Reuters reported that Google, in partnership with the FBI, had disrupted the NetNut residential proxy network used in malware operations. Google said its coordinated actions "caused significant degradation to NetNut's proxy network and its business operations, reducing the available pool of devices for the proxy operator by millions." Alarum's American Depositary Shares fell 20.8 percent to $6.35 that day.
After the market closed on July 2, Alarum issued a press release confirming the FBI had seized certain domains associated with NetNut. The company said it "takes this matter seriously and will fully cooperate with law enforcement." Bloomberg subsequently reported that the FBI was investigating whether Alarum's subsidiary had a role in linking customers' home internet devices without consent into a network used to disguise locations. On July 3, Alarum warned of service disruptions, and on July 4, it said it would temporarily pause traffic through the relevant network services. Shares plunged 51.49 percent to $3.08 on July 6, 2026.
Investors who purchased ALAR securities during the class period must file a motion with the court by October 5, 2026 to seek appointment as lead plaintiff. The lead plaintiff represents the proposed class and may influence litigation strategy and settlement decisions. Investors may participate in any recovery without serving as lead plaintiff.
Multiple law firms have announced investigations or filed actions, including Faruqi & Faruqi, Kirby McInerney, Rosen Law Firm, and Pomerantz. The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought who is adequate and typical of class members.
The class action follows a sharp decline in Alarum's stock, which has lost more than half its value since the FBI probe was disclosed. The October 5 deadline is the next key date for affected investors to consider their legal options.
This article is for informational purposes only and does not constitute investment advice.
