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The Shuman Law Firm Announces the Filing of a Class Action Lawsuit Against SolarWinds, Inc.

^{Published on 2010-10-21 08:50:42 - Market Wire}
 

BOULDER, Colo.--([ BUSINESS WIRE ])--The Shuman Law Firm ([ www.shumanlawfirm.com ]) today announced that a class action lawsuit has been filed in the United States District Court for the Northern District of Texas on behalf of purchasers of the common stock of SolarWinds, Inc. ("SolarWinds" or the "Company") (NYSE: SWI) between February 8, 2010 and July 21, 2010, inclusive (the aClass Perioda).

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

If you wish to discuss this action or have any questions concerning this notice or your rights and interests with respect to this matter, please contact Rusty E. Glenn toll-free at 866-974-8626 or email Mr. Glenn at [ rusty@shumanlawfirm.com ].

The complaint charges SolarWinds and certain of its officers and/or directors with violations of the Securities Exchange Act of 1934. 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.

On July 21, 2010, the Company cut its recently reaffirmed and raised revenue guidance. Thereafter, 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. In response to the Companya™s announcement, 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 purchased SolarWinds common stock during the Class Period, you may request that the Court appoint you as lead plaintiff of the class no later than December 14, 2010. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.

The Shuman Law Firm represents investors throughout the nation, concentrating its practice in securities class actions and shareholder derivative actions.