The lawsuit contends that Alarum Technologies failed to disclose that its subsidiary, NetNut, allegedly engaged in unauthorized activity by incorporating customer home internet devices into a third-party network without consent. According to the complaint, this practice enabled cyber criminals to mask their locations, significantly increasing the company's legal liability and jeopardizing its operations. The suit argues that these omissions rendered the company's public statements regarding its business health materially false or lacking a reasonable basis.

Investors who incurred losses during the designated period may participate in the litigation under a contingency fee arrangement, meaning no out-of-pocket costs are required. While the court has not yet certified a class, those interested in serving as lead plaintiff must file their motions by the October 5 deadline. Shareholders retain the option to choose their own legal counsel or remain absent class members, as the ability to recover damages is not contingent upon serving as a lead representative.