SolarWinds investors allege board knew about cyber risks

FILE PHOTO: The SolarWinds logo is seen outside its headquarters in Austin, Texas, U.S., December 18, 2020. REUTERS/Sergio Flores/File Photo

(Reuters) - SolarWinds Corp investors have sued the software company's directors, alleging they knew about and failed to monitor cybersecurity risks to the company ahead of a breach that created a vulnerability in thousands of its customers' systems.

The lawsuit filed in Delaware on Thursday appears to be the first based on records shareholders demanded from the company after Reuters reported last December that malicious code inserted into one of the company's software updates left U.S. government agencies and companies exposed.