SHAREHOLDER ALERT: SolarWinds Inc. (NYSE: SWI) Insiders Under Investigation for Insider Trading Relating to Cybersecurity Breach
SAN FRANCISCO, Dec. 21, 2020 /PRNewswire/ -- Schubert Jonckheer & Kolbe LLP is investigating potential derivative claims on behalf of SolarWinds Inc. (NYSE: SWI) against several of the members of its Board of Directors.
The firm's investigation concerns possible breaches of fiduciary duty by the members of SolarWinds' Board of Directors by causing the sale of $286 million of SolarWinds stock while in possession of non-public information regarding the massive hacking of SolarWinds' software. It has been reported that on Friday, December 4, 2020, the cybersecurity firm FireEye discovered that it had been hacked via SolarWinds' Orion software and that FireEye promptly informed SolarWinds. On the next trading day, Monday, December 7, 2020, SolarWinds' major private equity investors, Silver Lake and Thoma Bravo, whose representatives are members of SolarWinds' Board of Directors, sold $286 million shares of SolarWinds stock. The next day, on December 8, it was publicly disclosed that SolarWinds' software had been hacked. Since that announcement SolarWinds' stock price has declined approximately 39%.
In an article published by The Washington Post on December 15, 2020, regarding those insider sales of SolarWinds' stock, Jacob S. Frenkel, a former senior counsel in the SEC's Division of Enforcement stated, "Of course the SEC is going to take a look at that" and "Large trades in advance of a major announcement, then an announcement: That is a formula for an insider trader investigation."
The Schubert Firm is investigating potential derivative claims based on harm the company has suffered as a result of possible breaches of fiduciary duty by the company's directors and affiliated entities. For more information, please visit our website at https://www.classactionlawyers.com/solarwinds.
If you own stock in SolarWinds and wish to obtain additional information about your legal rights, please contact us today.
About Schubert Jonckheer & Kolbe LLP
Schubert Jonckheer & Kolbe represents shareholders, employees, and consumers in class actions against corporate defendants, as well as shareholders in derivative actions against their officers and directors. The firm is based in San Francisco, and with the help of co-counsel, litigates cases nationwide.
Contact
Alexandra Green
Schubert Jonckheer & Kolbe LLP
[email protected]
Tel: 415-299-8207
SOURCE Schubert Jonckheer & Kolbe LLP
Related Links
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article