In a recent 8-K filing with the U.S. Securities and Exchange Commission, SolarWinds said it reached an agreement with shareholders, who sued the company alleging they were misled about the 2020 hack. Investors accused the software house, which makes network management tools used by corporations and government departments, of misrepresenting its security and failing to adequately monitor cybersecurity risks. SolarWinds will not accept any liability or admit fault as part of the shareholder suit, if a court agrees to the settlement.
In the same filing, SolarWinds also said it received a Wells notice from the SEC, informing the company of the regulator’s intention to file enforcement action “with respect to its cybersecurity disclosures and public statements, as well as its internal controls and disclosure controls and procedures.” SolarWinds said its disclosures and public statements at the time of the breach were “appropriate,” but did not elaborate.
‘Enforcement 40’ for 2020
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