Cybersecurity Company Must Face Investor Fraud Suit, Judge Says | #hacking | #cybersecurity | #infosec | #comptia | #pentest | #ransomware

IronNet Inc. and its top executives can’t escape claims that they misled investors, prompting a stock drop when the cybersecurity software company revised revenue projections downward, a federal judge said.

The proposed class of harmed investors can pursue their fraud and insider trading claims, after Judge Rossie D. Alston Jr. on Wednesday rejected a motion to dismiss their suit in US District Court for the Eastern District of Virginia.

IronNet’s motion to dismiss claims that it defrauded investors with misrepresentations failed because the revenue projections concealed serious risks, Judge Alston said. Additional insider trading claims against Keith Alexander, a …