SolarWinds Sale Draws Investor Scrutiny Suit on Deal Closing Day

The $4.4 billion private equity sale of SolarWinds Corp., completed Wednesday, likely shortchanged public shareholders in favor of influential insiders, according to a lawsuit filed the same day.

An investment trust sued the cybersecurity business for deal-related documents, saying the available information suggests its financial backers at Silver Lake Group LLC and Thoma Bravo LLC engineered the transaction to exit their holdings in one fell swoop, even if it meant cashing out minority investors at a discount. The acquisition by Turn/River Capital LP closed on the first eligible day, 20 days after the information statement was sent out March ...