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NEW YORK (REUTERS) – Investors in SolarWinds sued the directors of the software company, alleging they knew and failed to monitor cybersecurity risks to the company before a breach that created vulnerability in thousands of systems of its customers.
The lawsuit filed in Delaware on Thursday, November 4 appears to be the first based on records demanded by the company’s shareholders after Reuters reported last December that malicious code inserted into one of the company’s software updates. the company left government agencies and businesses in the United States exposed.
The lawsuit names a mix of current and former directors as defendants.
A spokesperson for SolarWinds said the company is not commenting on pending litigation, but noted that it is focused on “deepening” customer relationships and “openly discussing our Secure by Design initiatives as we seek to set the standard for the development of secure software “.
Led by a Missouri pension fund, investors allege the board failed to implement procedures to monitor cybersecurity risks, such as requiring company management to report regularly on these risks.
They are seeking damages on behalf of the company and reforming its cybersecurity oversight policies.
The lawsuit is the latest consequence of the SolarWinds software breach that allowed hackers to gain access to data from thousands of companies and government offices that used its products and which US officials attributed to Russia.
SolarWinds has said it is cooperating with investigations into the violation by the United States Securities and Exchange Commission, the Department of Justice and others. The company decided to dismiss another shareholder lawsuit seeking damages for a drop in its share price.
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