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November 1, 2023
SEC Charges SolarWinds and Chief Information Security Officer with Fraud, Internal Control Failures
SEC.gov
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Contributed by: Bill Russell
Summary
SEC charges SolarWinds and CISO Timothy Brown for fraud and control failures due to known cybersecurity risks. Allegedly from IPO in October 2018 to December 2020 attack, they overstated their cybersecurity practices and understated or didn't reveal risks, misleading investors. SolarWinds' statements contradict internal assessments of defects and high risk. SEC alleges Brown knew risks but didn't resolve them or alert the company more. After incomplete disclosure about the attack, SolarWinds stock dropped around 35% by the month's end. Complaint seeks penalties and officer/director bar against Brown.
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