Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Lessons for CISOs from the SolarWinds Breach and SEC Enforcement
In an era where digital threats loom large, the responsibilities of Chief Information Security Officers (CISOs) have expanded beyond traditional IT security to encompass a broader governance, risk management, and compliance role. The infamous SolarWinds Corp. attack, which compromised numerous public and private organizations globally, illustrates the complex cybersecurity landscape CISOs navigate. The subsequent legal and regulatory responses, including a complaint by the U.S. Securities and Exchange Commission (SEC), underscore the critical role of CISOs in not only safeguarding digital assets but also ensuring compliance with evolving cybersecurity disclosure requirements. This article examines the SolarWinds incident and the SEC's actions to derive essential governance lessons for CISOs.
In 2020, SolarWinds disclosed that it had been subject to a cyberattack, commonly referred to as "SUNBURST." SUNBURST is believed to have been conducted by Russian state-sponsored hackers and affected over 18,000 customers, including government agencies and Fortune 500 companies. See, Complaint, Securities and Exchange Commission v. SolarWinds Corp. et al, Case No. 1:23-cv-09518. Filed Oct. 30, 2023. Attackers compromised the infrastructure of SolarWinds, a leading provider of IT management software, to distribute malicious updates to the company's Orion software.
In response to the breach, on Oct. 30, 2023, the SEC sued SolarWinds and its CISO, Timothy G. Brown, in connection with the SEC Division of Enforcement's investigation of the cyberattack. Id. The SEC alleges that from October 2018, when SolarWinds went public, to January 2021, SolarWinds and Brown "defrauded SolarWinds" investors by overstating SolarWinds' cybersecurity practices and understating or failing to disclose known risks. See, "SEC Charges SolarWinds and Chief Information Security Officer with Fraud, Internal Control Failures," U.S. Secrities and Exchange Commission. Oct. 30, 2023. In its filings with the SEC, SolarWinds allegedly misled investors by disclosing only generic and hypothetical risks at a time when SolarWinds and Brown knew of specific deficiencies in SolarWinds' cybersecurity practices as well as the increasingly elevated risks the company faced at the same time. See, Amended Complaint, Securities and Exchange Commission v. SolarWinds Corp. et al, Case No. 1:23-cv-09518. Filed Feb. 16, 2024. Recently, the SEC filed an amended complaint that lays out the same claims it made against the company last fall, only in greater detail. Id.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
Warehouse Liability: Know Before You Stow!
As consumers continue to shift purchasing and consumption habits in the aftermath of the pandemic, manufacturers are increasingly reliant on third-party logistics and warehousing to ensure their products timely reach the market.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.