Bloomberg Law
Sept. 8, 2022, 4:15 PM

SolarWinds Board Beats Investor Lawsuit Over Russian Cyberattack

Mike Leonard
Mike Leonard
Legal Reporter

SolarWinds Corp.'s senior leaders dodged investor litigation in Delaware over a major cyberattack by Russian hackers in 2020—called “Sunburst"— that compromised the systems of Fortune 500 companies and US government agencies using the company’s Orion software platform.

Vice Chancellor Sam Glasscock III threw out oversight claims by a group of pension funds and investors, finding that while the SolarWinds board “failed to prevent a large corporate trauma,” it did enough to avoid liability for ignoring red flags or utterly failing to monitor internal cybersecurity protocols.

Glasscock, writing for Delaware’s Chancery Court, acknowledged that cybersecurity issues present a unique risk for ...

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