Shares of Alarum Technologies slid another 11.8% to $1.35 on September 2 as a fresh wave of law-firm notices reminded investors that a securities class action with an October 5, 2026 lead-plaintiff deadline is gathering momentum. The stock, which traded above $8 before the crisis, has now lost more than 80% of its value in two months — and the legal and operational threats show no sign of easing.
• The FBI Seized Key Infrastructure, and Google Helped Dismantle the Network. On July 2, Reuters reported that Google, acting in partnership with the FBI, "weakened a network of internet-connected devices being used to conceal and route malicious online traffic," reducing available devices "by millions."
Bloomberg then reported the FBI was investigating whether Alarum's subsidiary had "a role in linking customers' home internet devices without their consent." Over the next two trading sessions, the stock collapsed 61.85%. When a company's core product is physically dismantled by federal authorities, the revenue base evaporates in real time.
• Alarum's Own Disclosures Admitted the Damage Could Be "Material." The company acknowledged it was "currently experiencing disruptions to a portion of its services" and warned they were "likely to have a material adverse effect on the Company's operations, financial results and its ability to provide certain services to customers." It then paused traffic through the affected network entirely. That pause gutted the proxy business that was Alarum's primary revenue engine.
• At Least Six Law Firms Are Now Competing to Lead the Class Action. The lawsuits allege Alarum "misled investors by failing to disclose alleged unauthorized proxy network practices" and the resulting risks.
Specifically, claims state the subsidiary was "engaging in illegal activity by linking customer home internet devices into another network without the customer's consent" and that "this activity allows cyber criminals to conceal their locations." The class period stretches from March 2025 through July 2, 2026 — a window during which the company actively promoted the business. Settlement costs or an adverse verdict would hit a balance sheet already under severe revenue pressure.
• The Stock's Slow Bleed Signals Investors See No Quick Fix. From $1.67 on August 26 to $1.35 today, the shares have dropped steadily even on no new operational disclosures, suggesting the drip of litigation notices alone is eroding confidence. With the FBI probe unresolved, proxy services paused, and legal exposure widening, Alarum faces the existential question of whether any viable business remains beneath the wreckage.