The legal action, filed by Pomerantz LLP, centers on the company's subsidiary, NetNut, and its role in residential proxy operations. On July 2, 2026, reports surfaced that Google, in coordination with the FBI, had moved to dismantle a network of devices used to route malicious traffic. The disclosure immediately drove Alarum’s American Depositary Receipts down by $2.67.

Market volatility intensified later that same day when Bloomberg reported an active FBI investigation into whether NetNut linked home internet devices without user consent. The U.S. Department of Justice confirmed the seizure of multiple domains associated with the proxy platform. Following these revelations, Alarum shares suffered a further 61.85% decline over two trading sessions, closing at $3.06 by July 6. Investors impacted by these events are directed to contact Danielle Peyton at Pomerantz LLP to participate in the ongoing litigation.