Lawsuit seeks to recover damages for SolarWinds investors under US federal securities laws.
Global investor rights, Rosen Law Firm has filed a class action lawsuit on behalf of purchasers of the securities of SolarWinds Corporation between February 24, 2020 and December 15, 2020, inclusive (the “Class Period”). The lawsuit seeks to recover damages for SolarWinds investors under federal securities laws.
According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that:
- Since mid-2020, SolarWinds Orion monitoring products had a vulnerability that allowed hackers to compromise the server upon which the products ran
- SolarWinds’ update server had an easily accessible password of ‘solarwinds123’
- Consequently, SolarWinds’ customers, including, among others, the Federal Government, Microsoft, Cisco, and Nvidia, would be vulnerable to hacks
- As a result, the Company would suffer significant reputational harm
- As a result, Defendants’ statements about SolarWinds’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
According to legal court filing, on February 24, 2020, the Company filed a Form 10-K for the fiscal year ended
December 31, 2019 (the “2019 10-K”). The 2019 10-K was signed by Defendants Thompson and Kalsu. The 2019 10-K contained signed certifications pursuant to the Sarbanes-Oxley Act of 2002 (“SOX”) by Defendants Thompson and Kalsu attesting to the accuracy of financial reporting, the disclosure of any material changes to the Company’s internal control over financial reporting and
the disclosure of all fraud.
The 2019 10-K stating the following risk regarding the Company’s cybersecurity measures:
“The risk of a security breach or disruption, particularly through cyberattacks or cyber intrusion, including by computer hacks, foreign governments, and cyber terrorists, has generally increased the number, intensity and sophistication of attempted attacks, and intrusions from around the world have increased”.
“In addition, sophisticated hardware and operating system software and applications that we procure from third parties may contain defects in design or manufacture, including “bugs” and other problems that could unexpectedly interfere with the operation of our systems”.
US-based Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation.
Gainey McKenna & Egleston has also announced that it has proceeded with a class action lawsuit has been filed against SolarWinds Corporation (“SolarWinds” or the “Company”) in the United States District Court for the Western District of Texas on behalf of those who purchased or acquired the securities of SolarWinds between February 24, 2020 and December 15, 2020, inclusive (the “Class Period”).
The lawsuit seeks to recover damages for SolarWinds investors under the US federal securities laws.
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that:
- Since mid-2020, SolarWinds Orion monitoring products had a vulnerability that allowed hackers to compromise the server upon which the products ran
- SolarWinds’ update server had an easily accessible password of ‘solarwinds123’
- Consequently, SolarWinds’ customers, including, among others, the Federal Government, Microsoft, Cisco, and Nvidia, would be vulnerable to hacks
- As a result, the Company would suffer significant reputational harm;
- As a result, Defendants’ statements about SolarWinds’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
