SolarWinds Investors Allege Board Knew About Cybersecurity Risks Ahead of Massive Breach

SolarWinds traders have sued the software program firm’s administrators, alleging they knew about and failed to watch cybersecurity dangers to the corporate forward of a breach that created a vulnerability in hundreds of its prospects’ programs.

The lawsuit filed in Delaware on Thursday seems to be the primary based mostly on information shareholders demanded from the corporate after Reuters reported final December that malicious code inserted into one of many firm’s software program updates left US authorities businesses and corporations uncovered.

The lawsuit names a mixture of present and former administrators as defendants.

A SolarWinds spokesperson mentioned the corporate doesn’t touch upon pending litigation, however famous it’s targeted on “deepening” buyer relationships and “brazenly discussing our Safe by Design initiatives as we glance to set the usual for safe software program improvement.”

Led by a Missouri pension fund, the traders allege that the board did not implement procedures to watch cybersecurity dangers, reminiscent of requiring the corporate’s administration to report on these dangers repeatedly.

They’re in search of damages on behalf of the corporate and to reform the corporate’s insurance policies on cybersecurity oversight.

The lawsuit is the most recent fallout over the breach of SolarWinds’ software program, which gave hackers entry to the information of hundreds of corporations and authorities workplaces that used its merchandise and which US officers have attributed to Russia.

SolarWinds has mentioned it’s cooperating with investigations into the breach by the US Securities and Alternate Fee, Division of Justice and others. The corporate has moved to dismiss one other shareholder lawsuit in search of damages for a decline in its share worth.

© Thomson Reuters 2021