SAN DIEGO & PLANO, Texas--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that a purchaser of Intrusion Inc. (NASDAQ: INTZ) filed a class action complaint against the Company and its officers and directors for alleged violations of the Securities Exchange Act of 1934 between January 13, 2021 and April 13, 2021. Intrusion develops, sells, and supports products that purport to protect entities from cyberattacks. Its product offerings include Shield, a cybersecurity solution packaged as a comprehensive, real-time AI-based Security-as-a-Service.
If you suffered a loss due to Intrusion Inc.'s misconduct, click here.
Intrusion Inc. (INTZ) Misled Investors Regarding its Business Operations
According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, defendants failed to disclose to investors: (1) that Intrusion’s Shield product was merely a repackaging of existing technology in the Company’s portfolio; (2) that Shield lacked the patents, certifications, and insurance critical to the sale of cybersecurity products; (3) that the Company had overstated the efficacy of Shield’s purported ability to protect against cyberattacks; (4) that, as a result of the foregoing, Intrusion’s Shield was reasonably unlikely to generate significant revenue; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’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 Shield "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." According to the report, "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, the Company's share price fell 30% over the next two trading days to close at $20.53 per share on April 15, 2021.
If you purchased shares of Intrusion Inc. (INTZ) between January 13, 2021 and April 13, 2021, you have until June 15, 2021, to ask the court to appoint you lead plaintiff for the class. If you would like more information regarding your rights, please contact Lauren Levi at (800) 350-6003 or llevi@robbinsllp.com, or via our Shareholder Information Form.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
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