SolarWinds SEC Case Paused for Settlement
A District Court Judge in the South District of New York has granted a stay in the case involving the U.S. Securities and Exchange Commission (SEC) and SolarWinds Corp. This pause allows the parties to finalize their settlement, with details to be submitted by September 12.
The SEC initially sued SolarWinds in October 2023, alleging investor fraud and known cybersecurity vulnerabilities. This was the first time the SEC sued a company victimized by a cyberattack without simultaneously announcing a settlement. The lawsuit claimed that SolarWinds and its chief information security officer violated securities laws by concealing vulnerabilities and cyber events.
Last year, much of the lawsuit was dismissed by Judge Engelmayer due to 'hindsight and speculation'. However, the case was revived, leading to the recent settlement. The settlement details are yet to be revealed, but they will be submitted to the court by the given deadline.
The SEC's case against SolarWinds, stemming from the high-profile cyberattack linked to Russia, has reached a settlement. The attack, described by Microsoft as the 'largest and most sophisticated' ever seen, affected thousands of companies and government offices. The final settlement details are expected to be made public by September 12.
