N@N

The Briscoe Law Firm Investigates SolarWinds, Inc. on Behalf of Shareholders for Possible Breaches of Fiduciary Duties by its O

^{Published on 2010-10-20 12:30:33 - Market Wire}
 

DALLAS--([ BUSINESS WIRE ])--[ The Briscoe Law Firm, PLLC ], founded by a former state prosecutor and enforcement attorney for the United States Securities and Exchange Commission, and the law firm of Powers Taylor, LLP are investigating potential legal claims against the Board of Directors of [ SolarWinds, Inc ]. (aSolarWindsa or aSWIa) (NYSE: SWI) during the period of February 08, 2010 through July 21, 2010.

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

It has been alleged that during the class period, SWI and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing materially false and misleading statements regarding SolarWindsa™ business and financial results and outlook. Specifically, and according to a recently-filed complaint, SWI and certain insiders allegedly misrepresented and failed to disclose material problems with SolarWindsa™ license revenues and sales to the U.S. federal government, as well as material problems within SolarWindsa™ sales management team that prevented SolarWinds from accurately predicting the companya™s ability to make and maintain sales. As a result, the alleged statements about SolarWindsa™ expected financial performance lacked a reasonable basis when made, and, therefore, SolarWindsa™ stock traded at artificially inflated prices for a defined period of time.

On July 21, 2010, SolarWinds also cut its recently reaffirmed and raised revenue guidance. Describing why SolarWinds was abruptly cutting its financial forecasts, the company and certain insiders revealed there had been a 44% decline in U.S. federal government sales that was caused by the inability of SolarWindsa™ aUS federal sales management team to predict and positively influencea the pace of sales. Just a day later, 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 according to the federal complaint. In response to SolarWindsa™ 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.

If you currently own or purchased SolarWinds/SWI shares and would like additional information regarding this investigation or if you have information regarding the allegations against the company, please contact Patrick Powers at Powers Taylor, LLP, toll free (877) 728-9607, via e-mail at [ patrick@powerstaylor.com ], or Willie Briscoe at The Briscoe Law Firm, PLLC toll free (877) 397-5991, or via email at [ WBriscoe@TheBriscoeLawFirm.com ]. There is no cost or fee to you.

The Briscoe Law Firm is a full service business litigation, commercial transaction, and public advocacy firm with more than 20 years of experience in complex litigation and transactional matters.

Powers Taylor, LLP is a boutique litigation law firm that handles a variety of complex business litigation matters, including claims of investor and stockholder fraud, shareholder oppression, shareholder derivative suits, and security class actions.