SolarWinds, top executives hit with class-action lawsuit over Orion software breach

SolarWinds, top executives hit with class-action lawsuit over Orion software breach

SolarWinds and some of its top executives have been hit with a class action lawsuit by stockholders in the wake of the cyberattack that infiltrated the supply chain through its Orion management software. (Stephen Foskett/CC BY-NC-SA 2.0)

SolarWinds and some of its top executives have been hit with a class action lawsuit by stockholders, who allege the company lied and materially misled them about security practices leading up to a massive breach of its Orion management software that has reverberated throughout the public and private sector.


The class includes stock buyers who acquired publicly traded SolarWinds securities from Feb. 24 to Dec. 15, 2020 and names SolarWinds, former CEO Kevin Thompson and Chief Financial Officer Barton Kalsu as defendants.


The complaint alleges that each individual defendant was directly involved in the company’s day-to-day operations at the highest levels, were privy to confidential information about business operations and oversight of internal controls and made false and misleading statements that violated securities law.


“Defendants…knew that the public documents and statements issued or disseminated in the name of SolarWinds were materially false and misleading; knew that such statements or documents would be issued or disseminated to the investing public; and knowingly and substantially participated in…such statements or documents as primary violations of the securities laws,” lawyers for the plaintiffs wrote in a complaint.


Lawyers for the class point to a 2019 financial report submitted under the Sarbanes-Oxley Act of 2002 where company officials say that rising rates and increasing sophistication of cyber attacks, an increasingly complex IT supply chain and the nature of ..

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