A U.S. district court dismissed all the SEC’s securities fraud and false filings claims against SolarWinds and its Chief Information Security Officer (CISO) Timothy Brown regarding the adequacy of cyberattack disclosures, finding that the SEC had impermissibly relied on “hindsight and speculation” to find those disclosures fraudulent. The court also dismissed the SEC’s claims that SolarWinds’ cybersecurity deficiencies amounted to deficient internal accounting controls, finding that the SEC had stretched the definition of “accounting” past its limit.
SEC v. SolarWinds Update: U.S. Federal District Court Dismisses Most of the SEC’s Case, but Some Fraud Claims and CISO Liability Remain
