Cybersecurity firm SolarWinds committed fraud and failed to maintain adequate internal controls for years, the SEC alleged in a lawsuit.
Cybersecurity firm SolarWinds committed fraud and failed to maintain adequate internal controls for years, the Securities and Exchange Commission alleged in a lawsuit.SolarWinds Corp banner hangs at the New York Stock Exchange on the IPO day of the company in New York, U.S., October 19, 2018.in U.S.
SolarWinds' "current state of security leaves us in a very vulnerable state," Brown allegedly wrote in the presentation. The SEC complaint cited numerous internal emails and messages that openly discussed alleged false statements made by the company, material risks in its cybersecurity systems, and products "riddled" with vulnerabilities.Orion is used to manage technology and I.T. systems.
The SEC alleged that SolarWinds, despite acknowledging the hack, failed to disclose that the vulnerability that the Russian hackers exploited had also been exploited to target other SolarWinds customers, including two unnamed cybersecurity firms and one unnamed federal agency. "A reasonable investor, considering whether to purchase or sell SolarWinds stock, would have considered it important to know the true state of SolarWinds' security, especially regarding the state of the Company's access controls for 'information systems' and 'sensitive data,'" the SEC said in the complaint.
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