Robbins LLP is Investigating Allegations That Alarum Technologies Ltd. Misled Investors Regarding the Unlawful Behavior of Its Subsidiary

Robbins LLP informs investors that a securities class action has been filed on behalf of all persons and entities that purchased or otherwise acquired Alarum Technologies Ltd. (NASDAQ: ALAR) securities between March 20, 2025 and July 2, 2026 (the "Class Period"). Alarum contends to be global provider of web data collection solutions, empowering organizations to gain a competitive edge by streamlining the collection, extraction, and analysis of large-scale structured data from public online sources.

The complaint alleges that Alarum and certain of its senior executives violated the federal securities laws by making materially false and/or misleading statements regarding the Company's anti-money laundering compliance, anti-terrorist financing controls, and regulatory risks.

Why Was Alarum Sued?

According to the complaint, Alarum extolled the purported advantages of its subsidiary NetNut Ltd. while omitting that NetNut engaged in unlawful behavior that materially raised Alarum's risk profile and called into question its business prospects. 

Specifically, the complaint alleges that defendants failed to disclose that:

(1) NetNut, was engaging in illegal activity by linking customer home internet devices into another network without the customer’s consent;

(2) this activity allows cyber criminals to conceal their locations;

(3) the foregoing materially heightened Alarum Technologies’ legal exposure and materially threatened its business prospects; and

(4) as a result, defendants’ statements about Alarum Technologies’ business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.

Why Did Alarum Stock Collapse?

According to the complaint, on July 2, 2026, during market hours, Reuters published an article entitled “Google disrupts NetNut proxy network used in malware operations.” On this news, Alarum ADSs fell $1.67 per share, or 20.8%, to close at $6.35 per ADS on July 2, 2026.

Also on July 2, 2026, after market hours, Bloomberg published an article entitled “FBI Probes Whether Alarum Unit is Behind Co-Opted Home Devices.” The article quoted Craig Labovitz, head of technology for Nokia Deepfield, a network security platform, as stating that “I think of residential proxy like thousands of anonymous strangers sneaking into your home to get unlimited internet access.” Further, “[m]ost users may not even notice the uninvited proxy internet squatters until the police come to their door investigating cybercrime coming from the home.”

Then, on July 4, 2026, Alarum issued a press release entitled “Alarum Technologies Announces Temporary Operational Pause of Certain Network Services.” On this news, the price of Alarum ADSs fell $3.27 per share, or 51.49%, to close at $3.08 per share on July 6, 2026.

Who May Be Eligible?

The lawsuit seeks to represent investors who purchased or otherwise acquired Alarum Technologies Ltd. (ALAR) securities during the applicable Class Period. If you purchased Alarum Technologies Ltd. stock during this period and suffered investment losses, you may have rights under the federal securities laws. Submit a form for Information.

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