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SolarWinds SEC overview:
- Who: SolarWinds is the subject of a potential enforcement action from the U.S. Securities and Exchange Commission.
- Why: The SolarWinds SEC potential action comes after a 2020 Russian data breach that came to light in December 2020.
- Where: The investigation is happening in the United States.
- What are my options: Norton LifeLock carries many options when it comes to data security.
SolarWinds is being investigated by the U.S. Securities and Exchange Commission in relation to a 2020 Russian data breach. The breach, allegedly from Russian military operatives, impacted U.S. military systems and came to light in December 2020.
The company has been the subject of legal action in the form of class actions from shareholders already in both Texas and Delaware federal court. But the SEC is also investigating the company and certain current and former executive officers and employees related to the data breach.
The notice of investigation, a Wells Notice, includes SolarWinds’ Chief Financial Officer and Chief Information Security Officer. The notice comes after the company’s Orion software was allegedly hacked.
“We disagree that any such action is warranted against either the company or any employees, and we will continue to explore a potential resolution of this ma$er before the SEC makes any final decision,” Ramakrishna wrote in the email to staff, according to Law360.
In response to the SEC’s Wells notice, the company said essentially the same.
“The results of the Investigation and the Wells Notice process and any corresponding enforcement action against the company or any of the individuals discussed above, and the costs, timing and other potential consequences of responding and complying therewith, including any indemnification obligations of the company, are unknown at this time,” the SEC said in a filing. “The company maintains that its disclosures, public statements, controls and procedures were appropriate, and it intends to continue to vigorously defend itself, including against any enforcement action or other charges.”
SolarWinds agreed to $26M settlement with investors previously in SolarWinds data breach
SolarWinds agreed to a $26 million settlement with investors in December, resolving claims that the security firm misled its investors about its digital security capabilities before it disclosed that it had suffered a data breach.
The settlement still needs to be approved by a judge but the investors have filed motions to agree to the settlement.
Have you ever been the subject of a data breach? Let us know in the comments.
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