Investors in SolarWinds have sued the firm’s directors, saying they were aware of and failed to manage cybersecurity threats to the company ahead of a hack that exposed a vulnerability in thousands of its customers’ systems. Based on the information shareholders sought from the firm reported last December that malicious malware injected into one of the firm’s software upgrades exposed US government agencies and enterprises, the Delaware action looks to be the first. The defendants in the complaint include a mix of current and previous directors.
A spokesman for SolarWinds stated that the business does not comment on current lawsuits but focuses on “deepening” customer connections and “openly addressing our Safe by Design activities as we aim to set the standard for secure software development.” The investors, represented by a Missouri pension fund, claim that the board failed to create measures to monitor cyber security concerns, such as mandating top operations to regularly report those risks. They are suing for monetary damages on behalf of the corporation and modifying the company’s cyber security monitoring standards. The lawsuit is the latest repercussion of the SolarWinds software breach, which provided hackers access to the data of thousands of enterprises and government agencies that utilized its products and was traced to Russia by US officials.
SolarWinds has said that the company collaborates with the US Securities and Exchange Commission, Department of Justice, and other inquiries into the incident. The corporation has attempted to dismiss yet another shareholder lawsuit demanding damages for a drop in its stock value.
