SEC Sues SolarWinds Over Delayed Disclosure of Major Cybersecurity Breach

Austin, Texas United States of America
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.


Confidence

95%

Doubts
  • The exact timeline of when SolarWinds became aware of the breach and when they disclosed it is not clear from the sources.

Sources

98%

  • Unique Points
    • The SEC’s order finds that SolarWinds violated the reporting provisions of the federal securities laws.
    • SolarWinds has agreed to cease and desist from committing or causing any future violations of these provisions.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

94%

  • Unique Points
    • 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.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (80%)
    • 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.
    • Author Conflicts Of Interest (100%)
      None Found At Time Of Publication

    93%

    • Unique Points
      • 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.
    • Accuracy
      No Contradictions at Time Of Publication
    • Deception (100%)
      None Found At Time Of Publication
    • Fallacies (100%)
      None Found At Time Of Publication
    • Bias (100%)
      None Found At Time Of Publication
    • Site Conflicts Of Interest (80%)
      • 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.
      • Author Conflicts Of Interest (100%)
        None Found At Time Of Publication

      98%

      • Unique Points
        • SolarWinds CISO Tim Brown said the SEC charged the company because it didn’t pay a ransom to the hackers.
        • Brown said the company chose to work with law enforcement instead of paying the ransom.
      • Accuracy
        No Contradictions at Time Of Publication
      • Deception (100%)
        None Found At Time Of Publication
      • Fallacies (100%)
        None Found At Time Of Publication
      • Bias (100%)
        None Found At Time Of Publication
      • Site Conflicts Of Interest (100%)
        None Found At Time Of Publication
      • Author Conflicts Of Interest (100%)
        None Found At Time Of Publication

      97%

      Cybersecurity: SolarWinds

      The Herald-Palladium Monday, 30 October 2023 00:00
      • Unique Points
        • The SEC charged SolarWinds with failing to disclose a cybersecurity incident to its investors.
        • The company’s stock price dropped significantly after the breach was disclosed.
      • Accuracy
        No Contradictions at Time Of Publication
      • Deception (100%)
        None Found At Time Of Publication
      • Fallacies (100%)
        None Found At Time Of Publication
      • Bias (100%)
        None Found At Time Of Publication
      • Site Conflicts Of Interest (100%)
        None Found At Time Of Publication
      • Author Conflicts Of Interest (100%)
        None Found At Time Of Publication