SolarWinds investors allege board knew about cyber risks

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SolarWinds investors allege committee  knew astir  cyber risks © Reuters. FILE PHOTO: The SolarWinds logo is seen extracurricular its office successful Austin, Texas, U.S., December 18, 2020. REUTERS/Sergio Flores/File Photo

By Jody Godoy

(Reuters) - SolarWinds Corp investors person sued the bundle company's directors, alleging they knew astir and failed to show cybersecurity risks to the institution up of a breach that created a vulnerability successful thousands of its customers' systems.

The suit filed successful Delaware connected Thursday appears to beryllium the archetypal based connected records shareholders demanded from the institution aft Reuters reported past December that malicious codification inserted into 1 of the company's bundle updates near U.S. authorities agencies and companies exposed.

The suit names a premix of existent and erstwhile directors arsenic defendants.

A SolarWinds spokesperson said the institution does not remark connected pending litigation, but noted it is focused connected "deepening" lawsuit relationships and "openly discussing our Secure by Design initiatives arsenic we look to acceptable the modular for unafraid bundle development."

Led by a Missouri pension fund, the investors allege that the committee failed to instrumentality procedures to show cybersecurity risks, specified arsenic requiring the company's absorption to study connected those risks regularly.

They are seeking damages connected behalf of the institution and to betterment the company's policies connected cybersecurity oversight.

The suit is the latest fallout implicit the breach of SolarWinds' software, which gave hackers entree to the information of thousands of companies and authorities offices that utilized its products and which U.S. officials person 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 institution has moved to disregard different shareholder suit seeking damages for a diminution successful its stock price.

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