Forescout Accused Of ‘Channel Stuffing’ In Whistleblower Email>
CRN – Michael Novinson
Private equity firm Advent International has subpoenaed Merlin International after a whistleblower email accused the cybersecurity solution provider of engaging in a âchannel stuffing schemeâ with Forescout. Forescout told CRN that the whistleblowerâs allegation is without merit, while Advent declined to comment further and Merlin didnât immediately respond to requests for comment. Forescoutâs stock is down $1.97 (7.9 percent) to $22.85 per share since Advent subpoenaed Merlin International in the Delaware Court of Chancery midday Friday. Advent directed Merlin in the subpoena to produce by June 24 all documents and communications concerning Forescout from Oct. 1, 2019, to present, including the cybersecurity partnerâs actual and expected demand for Forescout products and services, any planned requests for proposals or expansions, and its general purchasing guidelines for third-party items. Advent also instructed Merlin to testify during a June 24 deposition via Zoom. A 5.5-day trial in the Forescout-Advent case has been set for the week of July 20, with Forescout looking for the court to compel Advent to complete the transaction. Forescout was also sued by Fortinet last month for allegedly violating three patents held by Fortinet after its 2018 acquisition of rival Bradford Networks.
Link: https://www.crn.com/news/security/forescout-accused-of-channel-stuffing-in-whistleblower-email