The SEC alleges that SolarWinds failed to disclose the breach to investors in a timely manner, violating federal securities laws.
The SolarWinds breach is considered one of the most significant cyber-espionage events in recent history, believed to have been carried out by a group linked to the Russian government.
The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against SolarWinds over a significant cybersecurity breach that occurred in 2020.
The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against SolarWinds, a major IT management software company, over a significant cybersecurity breach that occurred in 2020. The SEC alleges that SolarWinds failed to disclose the breach to investors in a timely manner, violating federal securities laws. The breach, which was discovered in December 2020, allowed hackers to infiltrate the systems of several U.S. government agencies and private companies. The SEC's complaint, filed in the U.S. District Court for the Western District of Texas, alleges that SolarWinds knew about the breach as early as June 2020 but did not disclose it until December 2020. The SEC is seeking permanent injunctive relief, civil penalties, and an officer-and-director bar against SolarWinds' CEO and CFO.
The SolarWinds breach is considered one of the most significant cyber-espionage events in recent history. It is believed to have been carried out by a group known as APT29 or Cozy Bear, which is linked to the Russian government. The breach affected several U.S. government agencies, including the Treasury Department, the Department of Homeland Security, and the Department of State. The hackers gained access to the systems by inserting malicious code into a software update from SolarWinds. The company has since taken steps to improve its security, including hiring a new chief information security officer.
The SEC said SolarWinds failed to disclose to investors that its products were used in a cyberespionage campaign attributed to Russian intelligence services.
The company’s stock price plummeted after the breach was disclosed.
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The Washington Post is owned by Nash Holdings, LLC, a company controlled by Jeff Bezos. Bezos is the founder of Amazon, a company that provides cloud services and has a vested interest in cybersecurity issues.
The SEC said SolarWinds and two of its executives misled investors by failing to disclose the company’s poor cybersecurity practices.
The company’s stock fell by more than 40% in the days following the disclosure of the breach.
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AOL is owned by Verizon Communications, which also owns Yahoo and has a vested interest in cybersecurity due to its involvement in digital communications and data storage.