According to the Complaint, SolarWinds Corporation purports to provide information technology (IT) infrastructure management software products in the United States and internationally. The Company offers products to monitor and manage network, system, desktop, application, storage, and database and website infrastructures, whether on-premise, in the public or private cloud, or in a hybrid IT infrastructure.
The Complaint alleges that Defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) since mid-2020, SolarWinds Orion monitoring products had a vulnerability that allowed hackers to compromise the server upon which the products ran; (2) SolarWinds' update server had an easily accessible password of 'solarwinds123'; (3) consequently, SolarWinds' customers, including, among others, the Federal Government, Microsoft, Cisco, and Nvidia, would be vulnerable to hacks; (4) as a result, the Company would suffer significant reputational harm; and (5) 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.
On March 11, 2021, the Court issued an Order consolidating cases and appointing Lead Plaintiff and Counsel. All future docketing was ordered to be done in the lead case 21-CV-00138.
Lead Plaintiff filed a consolidated Complaint on June 1, 2021. Defendants filed a Motion to Dismiss the consolidated Complaint on August 2. On March 30, 2022, the Court issued an Order granting the Motion to Dismiss of one of the individual Defendants and denying the Motion to Dismiss of the remaining Defendants.
On November 3, 2022, the parties notified the Court that they had executed a term sheet memorializing their agreement in principle to settle the case. On November 28, the parties entered into a Stipulation and Agreement of Settlement. The Court granted preliminary approval of the Settlement on February 8, 2023. On July 28, the Court granted final approval of the Settlement, including an award of Attorneys’ Fees and Expenses, and entered Final Judgment.