Refile: UPDATE 1-US judge dismisses most of SEC lawsuit against SolarWinds concerning cyberattack

SolarWinds

18/07/2024 15:46

(Corrects 'request' to singular from plural in paragraph 4)
       NEW YORK, July 18 (Reuters) - A U.S. judge dismissed
much of the Securities and Exchange Commission's lawsuit
accusing software company SolarWinds  SWI.N  of defrauding
investors by hiding security weaknesses before and after a
massive cyberattack targeting the U.S. government.
    U.S. District Judge Paul Engelmayer in Manhattan said the
SEC can pursue securities fraud claims based on a statement on
SolarWinds' website prior to the so-called Sunburst attack about
the company's cybersecurity practices.
    He dismissed other claims of securities fraud and false
filings, based on pre-Sunburst disclosures, and said all claims
regarding post-Sunburst disclosures were based on "hindsight and
speculation" and also required dismissal.
    SolarWinds could not immediately be reached for comment, and
the SEC did not immediately respond to a request for comment.
    The lawsuit filed last October appeared to be the first
where the SEC sued a company that was a victim of a cyberattack,
rather than charging and simultaneously settling.
    Discovered in December 2020, Sunburst was a nearly two-year
cyberattack where hackers used SolarWinds' flagship network
management software, Orion, as a springboard into U.S.
government networks and international targets. 
    Several federal agencies were compromised, including the
Departments of Commerce, Energy, Homeland Security, State and 
Treasury. The full consequences of the attack remain unknown.
    

 (Reporting by Jonathan Stempel in New York; Additional
reporting by Chris Prentice; editing by Philippa Fletcher)
 ((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters
Messaging: jon.stempel.thomsonreuters.com@reuters.net))