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Case Status:    DISMISSED    
On or around 05/12/2011 (Notice of voluntarily dismissal)

Filing Date: October 15, 2010

According to the a press release dated on October 15, 2010, the complaint alleges that throughout the Class Period, defendants issued materially false and misleading statements regarding the Company’s operations and its business and financial results and outlook. According to the complaint, defendants misled investors by misrepresenting and failing to disclose material problems with SolarWinds’ license revenues and sales to the U.S. federal government, as well as material problems within the Company’s sales management team that prevented SolarWinds from accurately predicting the Company’s ability to make and maintain sales. As a result, defendants’ statements about the Company’s expected financial performance during the Class Period lacked a reasonable basis when made and SolarWinds stock traded at artificially inflated prices.

On July 21, 2010, the Company cut its recently reaffirmed and raised revenue guidance. Describing why the Company was abruptly cutting its financial forecasts, defendants revealed there had been a 44% decline in U.S. federal government sales that was caused by the inability of the Company’s “US federal sales management team to predict and positively influence” the pace of sales. On July 22, 2010, multiple analysts downgraded SolarWinds’ stock, including Jeffries & Co., Morgan Stanley, Needham & Company and Goldman Sachs. The downgrade was due to “too many explanations” and a “license miss of significant magnitude.” In response to the Company’s announcement and analyst downgrades, SolarWinds common stock plummeted 23% or $3.81 per share to close at $12.71 on July 22, 2010, on heavy trading volume.

On March 22, 2011, Judge Jorge A. Solis granted the motion to appoint Daniel Richardson as lead plaintiff, and approved the selection of lead and liaison counsel, Robbins Geller Rudman & Dowd LLP and Kendall Law Group, LLP, respectively. The Amended Complaint is due by May 2, 2011.

On May 12, 2011, the plaintiff filed a Notice of Dismissal without Prejudice. That same day, Judge Jane J. Boyle signed the Order dismissing the action without prejudice.

COMPANY INFORMATION:

Sector: Technology
Industry: Software & Programming
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: SWI
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: N.D. Texas
DOCKET #: 10-CV-02085
JUDGE: Hon. Jorge A Solis
DATE FILED: 10/15/2010
CLASS PERIOD START: 02/08/2010
CLASS PERIOD END: 07/21/2010
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Dyer & Berens LLP
    303 East 17th Avenue, Suite 300, Dyer & Berens LLP, CO 80203
    303.861.1764 303.861.1764 ·
  2. Holzer Holzer & Fistel, LLC (Atlanta)
    200 Ashford Center North, Suite 300, Holzer Holzer & Fistel, LLC (Atlanta), GA 30338
    770.392.0090 770.392.0090 ·
  3. Kendall Law Group, LLP
    3232 McKinney, Ste 700, Kendall Law Group, LLP, TX 75204
    214.744.3000 214.744.3000 ·
  4. Robbins Geller Rudman & Dowd LLP (Boca Raton)
    120 East Palmetto Park Road, Suite 500, Robbins Geller Rudman & Dowd LLP (Boca Raton), FL 33432
    561.750.3000 561.750.3364 ·
No Document Title Filing Date