An investor in SolarWinds, Inc. (NYSE:SWI) filed a lawsuit on behalf of investors who purchased SWI shares between February 8, 2010 and July 21, 2010 against SolarWinds, Inc. over alleged violations of Federal Securities Laws. Meanwhile an investigation on behalf of current long term investors in SolarWinds, Inc. (NYSE:SWI) shares over possible breaches of fiduciary duty by certain directors and officers at SolarWinds was announced.

The investigation by a law firm on behalf of current long term investors in stock of SolarWinds, Inc. (NYSE:SWI) concerns whether certain current and/or former officers and members of SolarWinds board of directors and executive officers can be held liable in connection with the alleged Securities Laws violations in the lawsuit by investors who purchased SWI stock between between October February 8, 2010 and July 21, 2010.
According to the complaint filed in the United States District Court for the Northern District of Texas the plaintiff alleges that SolarWinds violated the Securities Exchange Act of 1934 by issuing between February 8, 2010 and July 21, 2010, materially false and misleading statements regarding its operations and its business and financial results and outlook. SolarWinds 12 months revenue more than tripped over the past four years. While Solar Winds reported in 2006 $38.23million in Total Revenue it was able to report $116.45million in 2009. Its Net Income went from $9.59million to $29.51million over the same time period. Shares of SolarWinds, Inc. traded recently at $17.40 per share, down from its current 52weekHigh of $24.95 per share and SWI shares took a substantial hit in July when the company announced it would lower its guidance. On July 21, 2010, SolarWinds cut its recently reaffirmed and raised revenue guidance, so the lawsuit. SolarWinds, Inc announced, among other things, that it expects 2010 earnings of $0.67 to $0.70 per share on revenue of $146.0 million to $151.0 million. SolarWinds' previous guidance was earnings of $0.72 to $0.75 per share on revenue of $159.0 million to $165.0 million and the current consensus earnings estimate is $0.73 per share on revenue of $159.8 million for the year ending December 31, 2010. Describing why SolarWinds 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 its 'US federal sales management team to predict and positively influence' the pace of sales. . Shares of SolarWinds, Inc. went from almost $18 on July 15 to almost $12 on July 23 in response to the announcement