SEC Sues SolarWinds Over 2020 Hack Attributed to Russians

The Securities and Exchange Commission on Monday sued SolarWinds, the software company victimized by Russian-linked hackers over three years ago, alleging the firm defrauded shareholders by repeatedly misleading them about its cyber vulnerabilities and the ability of attackers to penetrate its systems.

The SEC’s lawsuit is a milestone in its evolving attempt to regulate how public companies deal with cybersecurity. A hack that steals business secrets or customer data often pummels the victim company’s stock price, showing why firms with public shareholders have to accurately disclose such threats, the SEC says. The regulator recently imposed stricter cybersecurity reporting rules for public companies.