SOURCE: Izard Nobel LLP

October 18, 2010 18:31 ET

Izard Nobel LLP Announces Class Action Lawsuit Against SolarWinds, Inc.

WEST HARTFORD, CT--(Marketwire - October 18, 2010) -  The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status 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 "Class Period"). 

The Complaint charges SolarWinds and certain of its officers and directors with violations of federal securities laws. Specifically, the Complaint alleges that the defendants issued materially false statements regarding the Company's operations, financial results and outlook. According to the Complaint, defendants misrepresented and failed to disclose material problems with SolarWinds' license revenues and sales to the U.S. federal government, as well as material problems within the Company's sales management team that prevented SolarWinds from accurately predicting the Company's ability to make and maintain sales.

On July 21, 2010, the Company cut its revenue guidance. Defendants revealed there had been a 44% decline in U.S. federal government sales that was caused by the inability of the Company's "US federal sales management team to predict and positively influence" the pace of sales. On July 22, 2010, multiple analysts downgraded SolarWinds' stock. In response to the Company's announcement and analyst downgrades, SolarWinds common stock fell 23% to close at $12.71 on July 22, 2010.

If you are a member of the class, you may, no later than December 14, 2010, request that the Court appoint you as lead plaintiff of the class. 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.

While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit:, or contact Izard Nobel LLP toll-free: (800) 797-5499, or by e-mail: For more information about class action cases in general, please visit our website:

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