Seriously Risky Business Newsletter
June 29, 2023
SEC vs SolarWinds 2: This Time it's Personal
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Policy & Intelligence
SolarWinds executives have been formally warned by the US Securities and Exchange Commission that it plans to bring enforcement actions against them over the 2020 supply chain attack that involved compromise of the company's Orion software platform.
In its SEC filing this week, SolarWinds announced that "certain current and former executive officers and employees of the Company, including the Company’s Chief Financial Officer and Chief Information Security Officer received 'Wells Notices'". A Wells Notice indicates that SEC staff have recommended the commission pursue a civil enforcement action against the recipients because the SEC believes they may have broken US federal securities laws.
The filing doesn't make it exactly clear what the executives are thought to have done wrong, but SolarWinds' last quarterly report provides some clues. Back in October 2022, the company as a whole received its own Wells Notice, which alleged "violations of certain provisions of the U.S. federal securities laws with respect to our cybersecurity disclosures and public statements, as well as our internal controls and disclosure controls and procedures".