theDocumentId => 1339831 SolarWinds Hit With Class-Action Lawsuit Following ...

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Threat Intelligence

1/5/2021
04:30 PM
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SolarWinds Hit With Class-Action Lawsuit Following Orion Breach

SolarWinds shareholders accuse the company of lying about its security practices ahead of the disclosure of a massive security incident.

A class-action lawsuit filed against SolarWinds and some of its executives accuses the company of lying and misleading shareholders about its security posture in the year leading up to its disclosure of a massive breach affecting public and private entities.

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The suit was filed by shareholders and names SolarWinds, in addition to outgoing CEO Kevin Thompson and CFO Barton Kalsu, as defendants. It alleges Thompson and Kalsu, who were involved with the company's daily operations and had access to proprietary data, made false and misleading statements to the Securities and Exchange Commission throughout last year.

The complaint states that SolarWinds "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." 

It continues to say SolarWinds failed to disclose that since mid-2020, its Orion monitoring tools had a vulnerability that enabled attackers to compromise the server on which its products ran. It also notes the company's update server had an easily accessible password of "solarwinds123." Consequently, SolarWinds customers would be vulnerable to hacks and, as a result, the company would suffer "significant reputational harm," the suit states. 

"As a result, Defendants' statements about SolarWinds's business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times," according to the suit.

Read more details here.

Dark Reading's Quick Hits delivers a brief synopsis and summary of the significance of breaking news events. For more information from the original source of the news item, please follow the link provided in this article. View Full Bio
 

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and24v1
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and24v1,
User Rank: Apprentice
1/7/2021 | 11:06:18 AM
A company like this should've known better
I think it would be something logical to think that a company like SolarWinds would have better security protocols, specially considering the kind of clients they provide software to. A surprising thing would be that their clients are not mad at them, and with all the information lost, the way that they managed the situation might be something at a lawsuit level. It's not that I have something against them, but if I, as a client, would've been missmanaged like this, I think I would be mad too. Thanks for the info!
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