Judge Dismisses Most of SEC SolarWinds Lawsuit

A U.S. federal judge has dismissed most of the Securities and Exchange Commission's (SEC) lawsuit against SolarWinds, which accused the company of misleading investors about its cybersecurity practices before and after a significant Russian cyberattack in 2020. The judge allowed the SEC to proceed with a securities fraud claim related to a statement on SolarWinds' website about its cybersecurity preparedness but dismissed claims about other disclosures as speculative. This decision is seen as a setback for the SEC's efforts to regulate corporate cybersecurity practices aggressively. The lawsuit's outcome has relieved many companies worried about regulatory penalties after breaches by sophisticated hackers. The judge emphasized that current laws give the SEC authority over financial controls but not all internal controls.