SolarWinds Corp. (NYSE:SWI) and its Chief Information Security Officer Timothy Brown have been sued by the U.S. Securities and Exchange Commission (SEC). The regulator alleges that between October 2018 and December 2020, the company and Brown provided misleading information to investors regarding SolarWinds’ cybersecurity practices.
SWI is an American software company that provides services for managing and monitoring computer networks.
During that timeframe, SolarWinds experienced a significant cybersecurity breach in which Russian hackers infiltrated its software. These hackers gained access to data from various U.S. government agencies, including the Justice and Homeland Security departments, and numerous private companies.
The lawsuit states that SolarWinds failed to disclose vulnerabilities and incidents in official filings and public statements. Moreover, the regulator stated that SWI and Brown didn’t adequately address warning signs related to the company’s cybersecurity risks.
Is SolarWinds Stock a Good Buy?
Overall, SolarWinds stock has received one Buy, four Hold, and one Sell recommendation for a Hold consensus rating. The average SWI stock price target of $14.50 implies 55.8% upside potential from current levels.
