Call us now:
This is a very serious development for the cybersecurity community and one to watch. As the SEC charges SolarWinds and its CISO with defraud investors and internal control failures relating to the 2020 hack.
The SEC alleges that the company ignored ‘Red Flags’ about the companies cybersecurity despite being aware of cybersecurity risks and vulnerabilities. Concealing the company’s poor cyber practices and heightened and increasing cybersecurity risks. Contrary to internal discussions and assessments of cyber policy violations, vulnerabilities, cyberattacks and regulatory filings.
The complaint below should be read by security professionals. It lays out the allegations’ about statements made by SolarWinds and its cybersecurity practices. That the SEC considers materially misleading and could also be seen by a reasonable investor to be false and misleading.
https://lnkd.in/ehSmdBSZ
The case adds substantial weight and opportunity to the SEC Whistleblower program. That under the final cyber rule adds further regulatory compliance as a potential action for Whistleblowers to consider. The SEC final cyber rule will change cybersecurity oversight and assurance from December 2023. The final rule sets the bar boards will attain to demonstrate cybersecurity risk management.
One wonders if this will be a wake up call for covered organizations. No it hasn’t been tried in court, but the indictment is serious, demonstrating the security failings at SolarWinds. That while POAMs may have been in place, they do not account for corporate and market mis-statements. That will be used to seek permanent injunctive relief, disgorgement with prejudgment interest, civil penalties, and an officer and director bar against the CISO. The accountable executive as far as the SEC are concerned.
Ted Dziekanowski Brian D. McCarthy Bob Dix Rachel V. Rose, JD, MBA
#paravasecuritysolutions #cybersecurity #cyberriskmanagment #securitiesandexchangecommission
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