SolarWinds Investors Sue Directors - Read Why - SolarWinds (NYSE:SWI)

SolarWinds Corp SWI investors prosecuted the software company's directors, alleging they knew about and failed to monitor cybersecurity risks to the company, Reuters reports.
The lawsuit named a mix of current and former directors as defendants.
The investors alleged that the board failed to implement procedures to monitor cybersecurity risks.
They sought damages and to reform the company's policies on cybersecurity oversight.
Malicious code inserted into one of the company's software updates left U.S. government agencies and companies exposed in December 2020.
“We do not comment on pending litigation, but this action is similar to a purported derivative lawsuit filed earlier this year. More importantly, we continue to focus on deepening our relationships with customers and openly discussing our Secure by Design initiatives as we look to set the standard for secure software development,” the SolarWinds spokesperson told Benzinga in an emailed statement
Related Content: At Least 200 Organizations Were Actively Intruded On In SolarWinds Hack: Bloomberg
Price Action: SWI shares closed lower by 0.71% at $16.79 on Friday.
Editor's note: The story has been updated with the company's statement.

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SolarWinds Investors Sue Directors - Read Why