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Rapid7 Reaches Settlement with Jana Partners, Adds Three New Directors to Board

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Rapid7, a cybersecurity company based in Boston, announced on Monday that it has reached an agreement with activist investor Jana Partners to add three new directors to its board. The new members—Wael Mohamed, Mike Burns, and Kevin Galligan—bring expertise in digital transformation, finance, operations, and investment strategies. One of the new directors is a partner from Jana Partners.

CEO Corey Thomas stated that the new additions will help the company refine its strategy, improve execution, and drive greater value for shareholders. Jana Partners’ managing partner, Scott Ostfeld, expressed satisfaction with the engagement, calling it “highly constructive” and noting optimism about Rapid7’s steps to enhance its leadership and operational capabilities.

The settlement comes after ongoing discussions between the two sides about ways to increase Rapid7’s share price, which has been affected by broader economic uncertainties. The company, which specializes in vulnerability management, has faced heightened competition as businesses reduce security spending. Rapid7’s stock has dropped 41% in the past year and 28% this year, reducing its market value to approximately $1.8 billion.

Jana Partners holds a 5.8% stake in Rapid7, amounting to 3.7 million shares, according to a regulatory filing. The company had previously been exploring potential acquisitions with interest from buyout firms such as Advent, Bain Capital, and EQT.

Rapid7 Nears Settlement with Activist Investor Jana Partners

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Rapid7, a cybersecurity company, is nearing a settlement with activist investor Jana Partners following discussions about boosting the company’s share price and exploring strategic options, including a potential sale. Under the terms being discussed, three new members would be added to Rapid7’s eight-member board, sources familiar with the matter told Reuters.

An agreement could be finalized as early as Monday, though the situation remains fluid, according to the sources. Neither Rapid7 nor Jana Partners commented on the negotiations.

The Boston-based company, which specializes in vulnerability management, has faced challenges as its stock has dropped 41% over the past 52 weeks and 28% this year, bringing its market value down to approximately $1.8 billion. Jana Partners owns a 5.8% stake in Rapid7, according to a March regulatory filing.

In addition to the ongoing settlement talks, Rapid7 had previously attracted acquisition interest from buyout firms like Advent, Bain Capital, and EQT.

Intel Wins Lawsuit Over Foundry Losses, $32 Billion Market Drop

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Intel has successfully defended itself against a shareholder lawsuit that accused the company of fraudulently hiding issues within its foundry business, which led to significant financial losses and a $32 billion drop in market value in a single day. The lawsuit stemmed from Intel’s failure to immediately disclose a $7 billion operating loss in its foundry business for the fiscal year 2023, which wasn’t revealed until April 2024.

U.S. District Judge Trina Thompson, in a decision made public on Tuesday, dismissed the claims, ruling that shareholders had incorrectly linked the $7 billion loss to Intel’s Foundry Services business. The judge further noted that statements made by former CEO Patrick Gelsinger regarding the company’s “significant traction” and “growing demand” for its foundry services were not misleading, as they referred to specific customers, not the overall revenue, which had been declining.

The lawsuit had accused Intel of inflating its stock price from January 25 to August 1, 2024, during which time the company posted a quarterly loss of $1.61 billion, announced layoffs of more than 15,000 employees, and suspended its dividend to save $10 billion in 2025. As a result, Intel’s stock price dropped by 26% the following day, causing a loss of $32 billion in market capitalization.

The Santa Clara-based company, which has faced growing competition from chipmakers like Nvidia, AMD, Samsung, and TSMC, has struggled to capitalize on the artificial intelligence boom. Intel ousted Gelsinger as CEO in December.

The case, titled In re Intel Corp Securities Litigation, was filed in the U.S. District Court for the Northern District of California.