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SolarWinds data breach settlement overview:
- Who: SolarWinds has agreed to a settlement with a class of investors.
- Why: The class action settlement resolves claims SolarWinds misled investors about its digital defense abilities prior to disclosing a data breach two years ago.
- Where: The class action lawsuit was filed in Texas federal court.
SolarWinds has agreed to pay $26 million to a class of investors to resolve claims the software firm misled them about its digital defense capabilities prior to disclosing it had suffered a data breach.
Investors have filed a preliminary approval of the class action settlement, calling the agreement an “excellent result” and a way to avoid costs and risks — along with affecting the range of possible recovery — associated with continuing litigation.
According to investors’ motion for approval, the settlement was reached on the recommendation of a mediator, with investors arguing it fulfills their goal of “securing the highest possible monetary recovery for the settlement class.”
Investors who acquired SolarWinds common stock between Oct. 18, 2018, and Dec. 17, 2020, are eligible to make claims to join the proposed class action settlement, according to the investors’ motion.
Investors say settlement with SolarWinds appropriately balances risk with monetary award amount
Investors also said the settlement agreement with SolarWinds is able to balance the amount of monetary recovery achieved against the “significant risk” that the class could receive less or nothing at all if their claims failed to be proven.
The settlement agreement accounts for 13% to 20% of the maximum potential damages possible, according to the investors’ motion for settlement approval.
SolarWinds was accused of regularly misleading investors about its cybersecurity defense capabilities before falling victim to a data breach purportedly conducted by Russian military operatives came to light in December 2020.
Microsoft warned in an October 2021 cybersecurity report that Russia-backed hackers were increasingly targeting U.S. government organizations, and with greater success.
Have you been impacted by a data breach? Let us know in the comments.
The investors are represented by John J. Rizio-Hamilton, Jonathan D. Uslaner, Benjamin W. Horowitz and Thomas Z. Sperber of Bernstein Litowitz Berger & Grossmann LLP and Gerald T. Drought and Frank B. Burney of Martin & Drought PC.
The SolarWinds data breach class action lawsuit is In re: Solar Winds Corp. Securities Litigation, Case No. 1:21-cv-00138, in the U.S. District Court for the Western District of Texas.
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One thought on $26M SolarWinds settlement over data breach disclosure seeks initial OK
What should I do if I have had severe data breaches that has cost me 10’s of thousands of dollars? I have evidence of most all these breaches. I need help with next steps. Thank you.