Class action lawsuit filed against SolarWinds after massive cybersecurity breach
FILE PHOTO: SolarWinds Corp banner hangs at the New York Stock Exchange (NYSE) on the IPO day of the company in New York, U.S., October 19, 2018. REUTERS/Brendan McDermid/File Photo
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AUSTIN, Texas (NewsNation Now) — A shareholder of Texas-based SolarWinds Corporation has filed a class action lawsuit after the company was involved in a massive cybersecurity attack involving the U.S. government and top companies like Microsoft.
Timothy Bremer filed the lawsuit in U.S. District Court on Monday accusing the company of a “violation of the federal securities laws.”
Bremer argues the company’s Securities and Exchange Commission reports “were materially false and/or misleading because they misrepresented and failed to disclose the following adverse facts pertaining to the Company’s business, operations, and prospects, which were known to Defendants or recklessly disregarded by them.”
“As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities, Plaintiff and other Class members have suffered significant losses and damages,” the lawsuit alleges.
The lawsuit alleges that public documents issued in the months leading up to the hack that statements issued were “materially false and misleading.”
SolarWinds issued the following statement to NewsNation after the lawsuit was filed:
“SolarWinds was the victim of a highly-sophisticated, complex and targeted cyberattack. We are collaborating closely with federal law enforcement and intelligence agencies to investigate the full scope of this unprecedented attack, including whether it was backed by the resources of a foreign government. We are also working with industry-leading third-party cybersecurity experts to assist in investigating, mitigating and remediating this attack.
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“We are solely focused on helping the industry and our customers understand and mitigate this attack, and quickly released hotfix updates to customers that we believe will close the vulnerability. We have also taken a number of steps to further secure our network and products, including through advanced endpoint detection and monitoring tools.”
The class action’s scope, if approved, would include people who purchased or traded shares between Feb. 24, 2020 and Dec. 15, 2020, according to the lawsuit.