Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against SolarWinds, Inc.
Oklahoma City, OK (August 4, 2015) – On July 31, 2015, a securities class action lawsuit was filed in the United States District Court for the Western District of Texas against SolarWinds, Inc. (NYSE: SWI). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is April 28, 2015 through July 16, 2015. More specifically, this litigation was filed because the Company failed to disclose material facts as follows: (1) that the Company’s domestic business was struggling against the Company’s expectations; (2) that the Company’s license sales growth of core license products and resulting license revenue was lower than expectations and guidance; (3) that the general quality of the “demand capture” the Company was capturing was dropping; and, (4) consequently, defendants’ statements were materially false and misleading at all relevant times.
On April 28, 2015, the Company issued a press release stating that it was pleased with its first quarter revenue growth and emphasized the strength of its hybrid financial model. However, on July 16, 2015, SolarWinds announced that its second quarter earnings failed to meet its revenue forecast and the Company lowered its full-year 2015 outlook from $512-$527 million to $502-$512 million. On this news, the Company’s shares declined to close at $35.54 per share on July 17, 2015.
Plaintiff seeks to recover damages on behalf of all SolarWinds, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Tuesday, September 29, 2015 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click here to obtain an investor certification. Once complete, please email this form to firstname.lastname@example.org, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.
Posted on Tue, August 4, 2015
by Robin Hester filed under