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Robbins Geller Rudman & Dowd LLP Files Class Action Suit against SolarWinds, Inc.

^{Published on 2010-10-15 10:50:57 - Market Wire}
 

BOCA RATON, Fla.--([ BUSINESS WIRE ])--Robbins Geller Rudman & Dowd LLP (aRobbins Gellera) ([ http://www.rgrdlaw.com/cases/solarwinds/ ]) today announced that a class action has been commenced in the United States District Court for the Northern District of Texas on behalf of purchasers of the common stock of SolarWinds, Inc. (aSolarWindsa or the aCompanya) (NYSE: SWI) between February 8, 2010 and July 21, 2010, inclusive (the aClass Perioda), seeking to pursue remedies under the Securities Exchange Act of 1934 (the aExchange Acta).

"US federal sales management team to predict and positively influence"

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffa�s counsel, David J. George of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at [ djr@rgrdlaw.com ]. If you are a member of this Class, you can view a copy of the complaint as filed or join this class action online at [ http://www.rgrdlaw.com/cases/solarwinds/ ]. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges SolarWinds and certain of its officers and/or directors with violations of the Exchange Act. SolarWinds provides powerful and affordable IT management software to more than 93,000 customers worldwide.

The complaint alleges that throughout the Class Period, defendants issued materially false and misleading statements regarding the Companya�s operations and its business and financial results and outlook. According to the complaint, defendants misled investors by misrepresenting and failing to disclose material problems with SolarWindsa� license revenues and sales to the U.S. federal government, as well as material problems within the Companya�s sales management team that prevented SolarWinds from accurately predicting the Companya�s ability to make and maintain sales. As a result, defendantsa� statements about the Companya�s expected financial performance during the Class Period lacked a reasonable basis when made and SolarWinds stock traded at artificially inflated prices.

On July 21, 2010, the Company cut its recently reaffirmed and raised revenue guidance. Describing why the Company was abruptly cutting its financial forecasts, defendants revealed there had been a 44% decline in U.S. federal government sales that was caused by the inability of the Companya�s aUS federal sales management team to predict and positively influencea the pace of sales. On July 22, 2010, multiple analysts downgraded SolarWindsa� stock, including Jeffries & Co., Morgan Stanley, Needham & Company and Goldman Sachs. The downgrade was due to atoo many explanationsa and a alicense miss of significant magnitude.a In response to the Companya�s announcement and analyst downgrades, SolarWinds common stock plummeted 23% or $3.81 per share to close at $12.71 on July 22, 2010, on heavy trading volume.

Plaintiff seeks to recover damages on behalf of all purchasers of SolarWinds common stock during the Class Period (the aClassa). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Robbins Geller, a 180-lawyer firm with offices in San Diego, San Francisco, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major cases pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Robbins Geller Web site ([ http://www.rgrdlaw.com ]) has more information about the firm.