SEC Files Charges Against SolarWinds for Concealing Cybersecurity Issues and Fraud

The Securities and Exchange Commission (SEC) has filed a lawsuit against SolarWinds, accusing the software company of failing to disclose cybersecurity vulnerabilities that led to a major breach. The SEC alleges that SolarWinds violated federal securities law by not disclosing known vulnerabilities that could be exploited by hackers. The breach, which occurred in 2020 and was linked to the Russian government, affected thousands of customer organizations, including nine federal agencies. SolarWinds, which claims to have over 300,000 customers, including 96% of the Fortune 500, has criticized the SEC's charges as "unfounded" and expressed concerns about national security implications. The SEC maintains that the company would have violated securities law even if the breach had not occurred.