UK Daily Mail
Two investment firms that together own 70 percent of SolarWinds sold off $280 million in stock just six days before it was revealed the technology company had been the subject of a huge hack hitting federal agencies.
On December 7, Silver Lake – a Silicon Valley investor – sold $158 million in shares, while Thoma Bravo – a San Francisco-based private equity firm – sold $128 million in shares on the same day.
Three executives from each firm sit on the board of SolarWinds and they have been the largest investors in the company since it went public in 2018.
In November, outgoing SolarWinds CEO Kevin Thompson also offloaded more than $15million shares in the company, according to the Washington Post.
The news has raised questions as to when SolarWinds was aware its software had been infiltrated by suspected Russian hackers, leaving government agencies at risk, as some call for an insider trading investigation. More
Aaaaand the Clintons and 0bamas are involved.
“Some call for an investigation….” ??! My mind gets blown every time I read something like this, which is way too often.
A couple of Christmases ago we caught a guy breaking into one of our cars parked out at the curb. When the police came, he was still inside our car. After they questioned him and learned he had quite a record of such things from two other western states, they asked us if we wanted to press charges. I was dumb-founded. The guy committed a crime, it was obvious. Why would the police ask me if I wanted to press charges? If I didn’t want to press charges, why would have called the police in the first place?
If the crime of insider trading took place — which seems obvious it did — why would anyone have to “recommend” an investigation?
So which members of Congress are involved? You know there has to be a few. Probably all Democrats, or we’d have heard by now. But I sure hope Kelly Loeffler and David Perdue are not involved.
@Thirdtwin, given the sweetheart deals on IPOs, you just know there are a dozen or more key democrats in congress with shares. I hope none of them got out in time while the company collapses around their holdings.
I smell a rat that goes by the name Pierre Delecto AKA Romney
I don’t have any real doubt that these are crooks and otherwise bad actors.
But one thing to keep in mind about company execs selling stock is that their opportunities to do so are very limited by SEC regulations. This company went public only two-three years ago (2018) and it is fairly common that execs who ended up with a bunch of stock or options cash out when it is possible to do so without depressing the stock price. So, execs selling stock per se isn’t a smoking gun in most cases.
To repeat: I don’t think these were innocent sales. I believe these people are bad guys and sold when they knew the company was about to take a huge hit.
Uncle Al — I must respectfully disagree; it is a smoking gun. Executive selling off of large stock holdings at a time when the company is taking a “huge hit” is the definition of insider trading, a big crime.
Remember that Martha Stewart went to prison over an “inside” trade that wasn’t actually insider trading. I hope the SEC will be all over these trades, but I will not hold my breath. Did someone well-connected in the federal gov’t leak info to SolarWinds? They will receive a “finders fee” for their efforts.
Uncle Al is right, although these were not “company execs” per se, but private equity investors.
There are many reasons for selling large blocs of shares; to reallocate a portfolio, to lessen risk in holding too few equities, to buy a new yacht or put your kids through college.
The sale is not suspect, the timing might be. Of course the SEC should look into these guys and if it can be proven that they traded on insider info, lock em up.
Why should anybody care about insider trading? Our paid representatives in government trade with impunity while making deals driving company values up or down. And that is the cleaner side of things. Right Joe?
And no one dies, well except maybe self inflicted.