SolarWinds Seeks Dismissal of ‘Unfounded’ SEC Cybersecurity Suit>
Bloomberg – Skye Witley
In response to the U.S.
Securities and Exchange Commission’s (SEC) allegations of securities fraud and controls violations, SolarWinds Corp. and its Chief Information Security Officer, Tim Brown, have filed a court motion seeking dismissal of the allegations.
The company denies any wrongdoing, asserting that it disclosed cybersecurity risks with legal specificity before the cyberattack and provided accurate information regarding the breach’s potential impact immediately after the incident.
SolarWinds argues that the SEC’s enforcement action, if successful, could expand the agency’s powers and elevate the requirements for publicly disclosing an organization’s cybersecurity posture.
The company contests the SEC’s claim that it misled investors with falsified public statements, arguing that it properly warned investors of potential cyberattacks.
SolarWinds also refutes the SEC’s assertion that crucial information was omitted from its public filings following the hack, stating that the agency is “nitpicking” and that the company made no materially misleading statements.
The company further challenges the SEC’s complaint regarding internal accounting controls rules, asserting that the SEC’s assertions regarding cybersecurity controls are conflated with those used in financial accounting contexts.
Additionally, the motion argues against the inclusion of Tim Brown in the lawsuit, dismissing his alleged involvement in the fraud or controls violations.
Link: https://news.bloomberglaw.com/privacy-and-data-security/solarwinds-seeks-dismissal-of-unfounded-sec-cybersecurity-suit