Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

SolarWinds investors allege board knew about cyber risks

11/05/2021 | 04:55pm EST
FILE PHOTO: Exterior view of SolarWinds headquarters in Austin

(Reuters) - SolarWinds Corp investors have sued the software company's directors, alleging they knew about and failed to monitor cybersecurity risks to the company ahead of a breach that created a vulnerability in thousands of its customers' systems.

The lawsuit filed in Delaware on Thursday appears to be the first based on records shareholders demanded from the company after Reuters reported last December that malicious code inserted into one of the company's software updates left U.S. government agencies and companies exposed.

The lawsuit names a mix of current and former directors as defendants.

A SolarWinds spokesperson said the company does not comment on pending litigation, but noted it is focused on "deepening" customer relationships and "openly discussing our Secure by Design initiatives as we look to set the standard for secure software development."

Led by a Missouri pension fund, the investors allege that the board failed to implement procedures to monitor cybersecurity risks, such as requiring the company's management to report on those risks regularly.

They are seeking damages on behalf of the company and to reform the company's policies on cybersecurity oversight.

The lawsuit is the latest fallout over the breach of SolarWinds' software, which gave hackers access to the data of thousands of companies and government offices that used its products and which U.S. officials have attributed to Russia.

SolarWinds has said it is cooperating with investigations into the breach by the U.S. Securities and Exchange Commission, Department of Justice and others. The company has moved to dismiss another shareholder lawsuit seeking damages for a decline in its share price.

(Reporting by Jody Godoy in New York; additional reporting by Sierra Jackson; Editing by Noeleen Walder and Matthew Lewis)

By Jody Godoy


© Reuters 2021
Latest news "Economy & Forex"
05:58pAustralia central bank to scrap QE on Feb. 1, wait with rate hikes till November
RE
05:54pCanada pledges non-lethal support for Ukraine, extends training mission
RE
05:53pUtilities Down As Treasury Yields Rise -- Utilities Roundup
DJ
05:50pExplainer-The Fed is planning to cut its balance sheet. Here's what we know
RE
05:50pCommunications Services Down As AT&T Weighs -- Communications Services Roundup
DJ
05:48pTech Up As Risk Appetite Rebounds Ahead Of Tesla, Intel Earnings -- Tech Roundup
DJ
05:45pFinancials Up On Hopes For Smooth Fed Policy Transition -- Financials Roundup
DJ
05:41pEthnicity next step in UK financial sector diversity, says watchdog advisor
RE
05:41pFed likely to hike rates in March as Powell vows sustained inflation fight
RE
05:39pConsumer Cos Down After Fed's Statement -- Consumer Roundup
DJ
Latest news "Economy & Forex"