SolarWinds Hit With Shareholder Suit Over IT Contracts

Law360, New York (October 18, 2010, 3:55 PM EDT) -- A shareholder of SolarWinds Inc. has filed a putative securities class action that accuses the company's officers and directors of promoting rosy financial forecasts despite knowing that contracts with the federal government for information technology work were likely to decline in value.

The suit, filed Friday in the U.S. District Court for the Northern District of Texas, also accuses SolarWinds' current and former officers of trading the company's shares while they were artificially inflated, with former President Michael Bennett allegedly pulling in more than $6 million...
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