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SolarWinds Corporation Class Action Lawsuit

48 days left to seek lead plaintiff status

Case Summary

Company Name
SolarWinds Corporation
Stock Symbol
SWI
Class Period
February 24, 2020 to December 15, 2020
Motion Deadline
March 5, 2021
Court
Western District of Texas

The SolarWinds Corporation class action lawsuit charges SolarWinds and certain of its executives with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers or acquirers of SolarWinds publicly traded securities between February 24, 2020 through December 15, 2020, inclusive (the “Class Period”).  The SolarWinds class action lawsuit was commenced on January 4, 2021 in the Western District of Texas and is captioned Bremer v. SolarWinds Corporation, No. 21-cv-00002.

SolarWinds purports to provide information technology (“IT”) infrastructure management software products in the United States and internationally.  SolarWinds offers products to monitor and manage network, system, desktop, application, storage, and database and website infrastructures, whether on premise, in the public or private cloud, or in a hybrid IT infrastructure.

The SolarWinds class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose: (1) since mid-2020, SolarWinds’ Orion monitoring products had a vulnerability that allowed hackers to compromise the server upon which the products ran; (2) SolarWinds’ update server had an easily accessible password of “solarwinds123”; (3) consequently, SolarWinds’ customers, including, among others, the federal government, Microsoft, Cisco, and Nvidia, would be vulnerable to hacks; (4) as a result, SolarWinds would suffer significant reputational harm; and (5) as a result, defendants’ statements about SolarWinds’ business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.

On December 13, 2020, Reuters reported that hackers alleged to be working for the Russian government had monitored email traffic at the U.S. Treasury and Commerce departments and that the alleged hackers are believed to have gained access to the agencies’ email traffic by deceptively interfering with updates released by SolarWinds, which services various government vendors in the executive branch, the military, and the intelligence services.

Then, on December 14, 2020, SolarWinds filed a Form 8-K with the U.S. Securities and Exchange Commission, disclosing that it had been the subject of a hack on its Orion monitoring products.  On this news, SolarWinds’ shares fell approximately 17%, damaging investors.

The Private Securities Litigation Reform Act of 1995 permits any investor who purchased SolarWinds securities during the Class Period to seek appointment as lead plaintiff in the SolarWinds class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the SolarWinds class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the SolarWinds class action lawsuit.  An investor’s ability to share in any potential future recovery of the SolarWinds class action lawsuit is not dependent upon serving as lead plaintiff.  If you wish to serve as lead plaintiff of the SolarWinds class action lawsuit or have questions concerning your rights regarding the SolarWinds class action lawsuit, please provide your information here or contact counsel, Michael Albert of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at malbert@rgrdlaw.com.  Lead plaintiff motions for the SolarWinds class action lawsuit must be filed with the court no later than March 5, 2021.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation.  With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history.  For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements.  Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims.  Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide.  Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.

Class Period: February 24, 2020 - December 15, 2020
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