What is the stat 'Fumble'?

I couldn't get a very clear explanation over the internet. Within the Dexterity stat figures "Fumble Recovery"

What does it mean if the attack is "fumbled"?

Solution 1:

Like in most RPGs there are critical hits. A fumbled attack in Torchlight II is a critical hit with negative impacts. By pressing J you open your Arcane Statistics (by default):

This character has a 21% chance to hit a negative critical strike. This hit would deal only -49% of the normal damage.

By skilling DEX you reduce this rate. With e.g. the +30% Fumble Recovery from your screenshot, my character would have a malus in dealt damage of only -19%when he does a fumbled attack, however the Fumble Chance keeps the same.