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SEC investigating SolarWinds over sale of $315 million shares days before Cyberattack was revealed to public

IT Management Software company SolarWinds, whose software was breached in a Russian cyberattack, said in an SEC filing that it is cooperating with an inquiry from the Securities and Exchange Commission. The SEC probe, which had not been disclosed previously, comes after the largest investors in SolarWinds sold $315 million in shares of the company days before the hack was revealed. The investor group avoided losses of more than $100 million, while the buyer, Canada’s largest pension fund, saw the value of its new shares decline more than 40 percent in the days after cyberattacks became public.

The SEC probe had not been disclosed previously. The largest investors in SolarWinds sold $315 million in shares of the company days before the hack was revealed. The investor group avoided losses of more than $100 million. Solar Winds buyer, Canada’s largest pension fund, lost more than 40 percent in the days after the cyberattack became public.

Hackers exploited vulnerabilities in its software to breach at least nine government agencies and about 100 companies.

JEFFREY NEWMAN REPRESENTS SEC WHISTLEBLOWERS IN VARIOUS ACTIONS INVOLVING SECURITIES FRAUD. YOU MAY REACH HIM AT JEFFREY.NEWMAN1@GMAIL.COM OR AT 617-823-3217.

 

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