SEC sues SolarWinds over massive cyberattack, alleging fraud and weak controls
Publishing timestamp: 2023-10-31 12:28:50
Summary
The article alleges that SolarWinds committed fraud and failed to maintain adequate internal controls for years prior to a Russian-backed hacking incident in 2019. The Securities and Exchange Commission (SEC) has filed a lawsuit against SolarWinds, claiming that the company overstated its cybersecurity practices and understated vulnerabilities in its systems. The SEC alleges that SolarWinds and its chief information security officer, Tim Brown, ignored red flags about cyber risks and misled investors. The article also mentions that SolarWinds' "crown jewel" Orion software was compromised in the hack, and the company failed to disclose that the vulnerability was also exploited to target other customers. SolarWinds has denied the allegations and plans to contest them in court.
Sentiment: NEGATIVE
Tickers: SWI,
Keywords: solarwinds corp, breaking news: politics, politics, breaking news, enterprise, products and services, breaking news: technology, internet, hacking, technology, business news, cybersecurity,
Source: https://www.cnbc.com/2023/10/31/solarwinds-defrauded-investors-about-cybersecurity-sec-alleges.html