NEW YORK, Jan. 21, 2021 /PRNewswire/ -- WeissLaw, a national shareholders' rights law firm experienced in cybersecurity litigation, is investigating possible breaches of fiduciary duty and violations of the federal securities laws by the Board of Directors, and certain Company officers of SolarWinds Corporation (NYSE: SWI), leading to a devastating cyberattack on its systems. A securities class action lawsuit is pending in the United States District Court for the Western District of Texas.
If you own SWI shares and wish to discuss this investigation, or if you have any questions concerning this notice or your rights or interests, visit our website at https://www.weisslawllp.com/SWI/ Or please contact: Joshua Rubin, Esq [email protected] (646) 588-3165 There is no cost or obligation to you.
On December 13, 2020, Reuters reported that hackers suspected to be connected to the Russian government have monitored electronic communications at certain U.S. government offices. The hackers are believed to have accessed these systems and others through updates released by SolarWinds. The next day, SolarWinds reported that a cyberattack on its systems inserted a vulnerability in updates to its Orion Platform products delivered between March 2020 and June 2020. The Company later corrected that timing, stating that hackers were accessing its systems since at least early September 2019 and the malicious code was added starting Feb. 20, 2020.
SolarWinds had been warned by a security researcher last year that anyone could access the Company's update server by using the simple password "solarwinds123." In addition, a former security adviser at SolarWinds said that in 2017 he warned management of cybersecurity risks which were ultimately ignored making a major security breach inevitable. News articles have reported that SolarWinds' security practices were so lax that, even days after the Company knew its platform was compromised, a cybersecurity company executive found that the malicious updates were still available for download.
Finally, prior to disclosing the cybersecurity breach, two investors who reportedly control six members of the Company's eleven-member Board of Directors sold approximately $285 million of their SolarWinds shares. Following disclosure of the security breach, shares in SolarWinds have lost about 40% of their value.
WeissLaw is investigating whether SolarWinds's Board of Directors: failed to properly safeguard, secure, and protect the Company from attacks by hackers; failed to heed warnings of lax cybersecurity practices; failed to establish and maintain a comprehensive system of internal controls over its cybersecurity practices; and breached its fiduciary duties owed to SolarWinds and its shareholders.
WeissLaw has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties and served as Lead Counsel in the Equifax Derivative Litigation. We have recovered over a billion dollars for defrauded clients. For more information about the firm, please go to: http://www.weisslawllp.com.