Securities class action litigation has been filed on behalf of investors in SolarWinds Corporation (“SolarWinds” or the ”Company“) (NYSE: SWI). If you purchased or otherwise acquired the publicly traded securities of SolarWinds between October 18, 2018 and December 17, 2020, inclusive (the “Class Period”), you may move the court for appointment as lead plaintiff by no later than March 5, 2021.
You may retain Lieff Cabraser Heimann & Bernstein, LLP, or other attorneys, as your counsel in the action. Recognized by the National Law Journal as one of the nation’s top plaintiffs’ law firms, Lieff Cabraser is committed to safeguarding the rights of investors and upholding the integrity of the market. We have significant experience and a successful track record of representing institutional and individual investors in securities and financial fraud litigation.
SolarWinds investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the SolarWinds Securities Class Litigation
SolarWinds, headquartered in Austin, Texas, provides information technology infrastructure management software products in the United States and internationally.
The action alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) since at least mid-2020, SolarWinds’s Orion monitoring products possessed a vulnerability that allowed hackers to compromise the server on which these products ran; (2) SolarWinds’s update server could be easily accessed with a password of ‘solarwinds123’; (3) consequently, SolarWinds’s customers, including, the United States federal government, Microsoft, Cisco, Nvidia, and others, were vulnerable to hacks; (4) as a result of these vulnerabilities, the Company would incur serious damage to its reputation; and (5) consequently, Defendants’ statements concerning SolarWinds’s 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 who were allegedly working for the Russian government had monitored email traffic at the U.S. Treasury and Commerce departments and gained access to the agencies’ email traffic by interfering with SolarWinds updates.
On December 14, 2020, SolarWinds disclosed that it had been the subject of a hack of its Orion monitoring products. On this news, the price of SolarWinds’s stock fell $3.93 per share, or 16.69%, from its closing price of $23.55 on December 11, 2020, to close at $19.62 per share on December 14, 2020, on extremely elevated trading volume.
On December 15, 2020, Reuters reported that during the previous year, a security researcher had “alerted the company that anyone could access SolarWinds’ update server by using the password ‘solarwinds123.’” The report also noted that “days after SolarWinds realized their software had been compromised, the malicious updates were still available for download.” On this news, the price of the Company’s stock fell $1.56 per share, or 7.95%, from its closing price of $19.62 on December 14, 2020, to close at $18.06 per share on December 15, 2020, on heavy trading volume.