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SolarWinds Loses Bid to Toss Investor Server Hack Risk Suit (1)

March 31, 2022, 5:38 PMUpdated: March 31, 2022, 6:55 PM

SolarWinds Corp. must face accusations it misled investors about vulnerabilities ahead of a massive cyberattack after a federal judge in Texas said the complaint sufficiently alleged materially misleading statements caused stock drops.

Investors say the technology company misled them about its security practices before disclosing a suspected Russian hack in late 2020. Their would-be class complaint adequately alleged the company recklessly made materially misleading statements that caused the investors’ losses, the U.S. District Court for the Western District of Texas said.

SolarWinds argued that the challenged statements were inactionable puffery and wouldn’t mislead investors, especially because the company warned ...