SolarWinds investors allege board knew about cyber risks
Information about SolarWinds investors allege board knew about cyber risks
By Jody Godoy
(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 https://www.reuters.com/article/global-cyber-solarwinds/hackers-used-solarwinds-dominance-against-it-in-sprawling-spy-campaign-idUSKBN28Q07P 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.
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.