US SEC sues SolarWinds, top cyber executive for fraud (updated)

SolarWinds

30/10/2023 20:33

(Updates with details from court filing)
       NEW YORK, Oct 30 (Reuters) - 
    The U.S. Securities and Exchange Commission (SEC) on Monday
sued SolarWinds Corp  SWI.N  and its top cybersecurity
executive, saying they repeatedly misled investors and the
public about a software product linked to one of biggest
hackings targeting the U.S. government.
  
        The SEC filed its lawsuit in Manhattan federal court,
accusing SolarWinds and its chief information security officer,
Timothy Brown, with repeatedly violating U.S. securities laws by
failing to disclose vulnerabilities and cyber events in
regulatory filings and other company statements.
  
        Regulators found SolarWinds misled the public about
repeated cybersecurity risks it was experiencing, beginning with
its initial public offering in 2018 through its first disclosure
about the attack in December 2020, the SEC said. 
  
        SolarWinds and Brown internally discussed known risks
and vulnerabilities but painted a starkly different portrayal of
its cybersecurity to the public, regulators said.
  
        "The SEC’s determination to manufacture a claim against
us and our CISO is another example of the agency’s overreach and
should alarm all public companies and committed cybersecurity
professionals across the country," the company said in a
statement, saying it would fight the allegations in court.
  
        
  

 (Reporting by Jonathan Stempel and Chris Prentice in New York
Additional reporting by Raphael Satter in Washington
Editing by Marguerita Choy)
 ((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters
Messaging: jon.stempel.thomsonreuters.com@reuters.net))