
LegalZoom.com, Inc. (LZ)
Whether directors and officers of LegalZoom.com, Inc. (LZ) breached their fiduciary duties to the company and its shareholders.
Investigation
12/15/2020
Initial Lawsuit
01/04/2021
Lawsuit Progression
03/11/2021
Investigation regarding statements made by SolarWinds following its disclosure of a “cyberattack that inserted a vulnerability within its Orion monitoring products which, if present and activated, could potentially allow an attacker to compromise the server on which the Orion products run.” The company also initially reported that out of its 300,000 customers, around 18,000 may have the Orion products that contain the vulnerability.
12/14/2020
SolarWinds released the statement regarding the cyberattack, disclosing that “the vulnerability was inserted within the Orion products and existed in updates released between March and June 2020 (the “Relevant Period”), was introduced as a result of a compromise of the Orion software build system and was not present in the source code repository of the Orion products.“
Stock Impact
Close | Previous close | Price variation | Percentage variation |
---|---|---|---|
$19.62 | $23.55 | $-3.93 | -16.69% |
Plaintiff brings this securities class action on behalf of persons or entities who purchased or otherwise acquired publicly traded SolarWinds securities from February 24, 2020 through December 15, 2020, inclusive.
According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:
(i) since mid-2020, SolarWinds Orion monitoring products had a vulnerability that allowed hackers to compromise the server upon which the products ran;
(ii) SolarWinds’ update server had an easily accessible password of ‘solarwinds123’;
(iii) consequently, SolarWinds’ customers, including, among others, the Federal Government, Microsoft, Cisco, and Nvidia, would be vulnerable to hacks;
(iv) as a result, the Company would suffer significant reputational harm; and
(v) as a result, Defendants’ statements about SolarWinds’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
03/11/2021
The court issued an order appointing the lead plaintiff and lead counsel.
06/01/2021
Lead Plaintiff New York City District Council of Carpenters Pension Fund, by and through its counsel, brings this action under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of itself and all persons and entities, except Defendants and their affiliates, who purchased or otherwise acquired the securities of SolarWinds Corporation. between October 18, 2018 and December 17, 2020, inclusive and were damaged thereby.
Operative complaint
08/02/2021
A motion to dismiss was filed with the court.
03/30/2022
Court Denied the motion to dismiss.
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