Sayce

BACKGROUND

I. Factual Background

21 The following allegations are taken from the Second Consolidated Amended Complaint 22 (“SCAC”), which the Court must treat as true for purposes of this motion. 23 Forescout provides cybersecurity services for large computer networks. Dkt. No. 142 ¶ 1. 24 Defendant Michael DeCesare is Forescout’s President and Chief Executive Officer is defendant 25 Christopher Harms was Forescout’s Chief Financial Officer (“Individual Defendants”). Id. ¶¶ 24- 26 25. 27 Prior to the Class Period, defendants told investors that Forescout predicted a 24% revenue growth for the 2019 fiscal year. Id. at ¶ 1. During the Class Period, between February 7, 2019 and May 15, 2020, Forescout produced revenue results indicating the company did not meet projections for the first, second, and third quarters of 2019. Id. ¶ at 46. Defendants stated Forescout’s decline in revenue was caused by customer order delays, Forescout’s shift to a subscription revenue model, and deteriorating macroeconomic conditions in Europe, Middle East, and Africa regions. Id. at ¶ 47. In October 2019, Forescout produced revenue results indicating…