In response to buyout rumors an investigation on behalf of investors of Fortinet, Inc. (NASDAQ:FTNT) over possible breaches of fiduciary duties was announced.

The investigation by a law firm concerned whether Fortinet, Inc. and certain of its officers and directors or others breached their fiduciary duties owed to Fortinet, Inc. (NASDAQ:FTNT) investors in connection with the takeover rumors.

Shares of Fortinet, Inc. (NASDAW: FTNT) traded since its IPO in November 2009 as low as $15 per share in June 2010 and recently as high as at $29.63 per share.

Sunnyvale, California based Fortinet 12 month total revenue more than doubled from 2006 to 2009. Fortinets 12 month total revenue went from $123.47million in 2006 to $252.12million in 2009. Fortinet reported for the first quarter 2010 $69.80million and for the second quarter $76.33million. Fortinet was able to get from a Net loss of $5.34million in 2006, and a Net loss of $21.84million to a Net Income of $60.18million in 2009. For the first quarter 2010 Fortinet reported a Net Income of $4.22million and for the second quarter Fortinet announced a Net Income of $6.87million.

According to a media report two software bankers said that Fortinet Inc, among other securities companies, would fit into he portfolios of tech giants looking for ways to increase security in their data centers.

Then on November 1, 2010, Fortinet (NASDAQ: FTNT) issued the following news report correction: In a recent article, Bloomberg News cited sources incorrectly indicating that Fortinet is in acquisition discussions with IBM. Fortinet said its policy is not to comment on rumors, and Fortinet declined to respond to rumors on this subject, but Fortinet said it believes that investors need to be aware of the error and announced that it is focused on building a strong independent company and is not in acquisition discussions with IBM. Fortinet had requested that Bloomberg retract or correct the story.