According to the law firm press release, SolarWinds and its subsidiaries design, develop, market, sell and support enterprise-class information technology (“IT”) infrastructure management software to IT professionals in organizations of all sizes. The Company’s products are purportedly designed to help enable efficient and effective management of IT networks, systems and application infrastructure.
The complaint alleges that throughout the Class Period, defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, defendants made false and/or misleading statements and/or failed to disclose, among others: (1) that the Company’s domestic business was struggling against the Company’s expectations; (2) that the Company’s license sales growth of core license products and resulting license revenue was lower than expectations and guidance; (3) that the overall quality of the “demand capture” the Company was garnering for certain core products was dropping; and, (4) that, as a result of the foregoing, defendants’ statements were materially false and misleading at all relevant times. On July 16, 2015, after the market closed, the Company disclosed its revenues for the second quarter of 2014 fell below analyst expectations and lowered revenue guidance for the next few quarters.
This case was voluntarily dismissed on September 17, 2015.