Intrusion Inc. Class Action Lawsuit
- Company Name
- Intrusion Inc.
- Stock Symbol
- Class Period
- January 13, 2021 to April 13, 2021
- Motion Deadline
- June 15, 2021
- Eastern District of Texas
The Intrusion Inc. class action lawsuit charges Intrusion and certain of its executives with violations of the Securities Exchange Act of 1934 and seeks to represent all persons and entities that purchased or otherwise acquired Intrusion securities between January 13, 2021 and April 13, 2021, inclusive (the “Class Period”). The Intrusion class action lawsuit was commenced on April 16, 2021 in the Eastern District of Texas and is captioned Celeste v. Intrusion Inc., No. 21-cv-00307.
Intrusion develops, sells, and supports products that purport to protect entities from cyberattacks by combining advanced threat intelligence with real-time artificial intelligence. Intrusion offers three products: Shield, a cybersecurity solution packaged as a comprehensive, real-time AI-based Security-as-a-Service; TraceCop, a big data tool with IP intelligence, including reputation information on known good and known bad active IP addresses; and Savant, a network monitoring solution that identifies suspicious traffic in real-time.
The Intrusion class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) Intrusion’s Shield product was merely a repackaging of existing technology in Intrusion’s portfolio; (ii) Shield lacked the patents, certifications, and insurance critical to the sale of cybersecurity products; (iii) Intrusion had overstated the efficacy of Shield’s purported ability to protect against cyberattacks; (iv) consequently, Intrusion’s Shield was reasonably unlikely to generate significant revenue; and (v) as a result, defendants’ positive statements about Intrusion’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On April 14, 2021, White Diamond Research published a report alleging, among other things, that Intrusion’s Shield product “has no patents, certifications, or insurance, which are all essential for selling cybersecurity products” and that “Shield is based on open-source data already available to the public.” The report further stated that: “Shield is a repackaging of pre-existing technology rather than an innovative offering.” Moreover, the report alleged that the claims that Shield “stopp[ed] a total of 77,539,801 cyberthreats from 805,110 uniquely malicious entities . . . in the 90-day beta program” were “outlandish,” leading White Diamond to question “[h]ow have these companies been able to function so far, as they’ve been attacked many times per minute by ransomware, malware, data theft, phishing and DDoS attacks?” On this news, Intrusion’s share price fell more than 16%, damaging investors. Intrusion’s share price continued its decline by falling an additional 14% the following trading session.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Intrusion securities during the Class Period to seek appointment as lead plaintiff in the Intrusion class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Intrusion class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Intrusion class action lawsuit. An investor’s ability to share in any potential future recovery of the Intrusion action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Intrusion class action lawsuit or have questions concerning your rights regarding the Intrusion class action lawsuit, please provide your information here or contact counsel, Michael Albert of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at email@example.com. Lead plaintiff motions for the Intrusion class action lawsuit must be filed with the court no later than June 15, 2021.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For eight consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.