The company’s top security executive was also named in the complaint filed by the Securities and Exchange Commission seeking unspecified civil penalties, reimbursement of “ill-gotten gains” and the executive’s removal.
Detected in December 2020, the SolarWinds hack penetrated U.S. government agencies including the Justice and Homeland Security departments, and more than 100 private companies and think tanks. It was a rude wake-up call on the perils of neglecting cybersecurity.
In the 68-page complaint filed in New York federal court, the SEC says SolarWinds and its then vice president of security, Tim Brown, defrauded investors and customers “through misstatements, omissions and schemes” that concealed both the company’s “poor cybersecurity practices and its heightened — and increasing — cybersecurity risks.”
In a statement, SolarWinds called the SEC charges unfounded and said it is “deeply concerned this action will put our national security at risk.”
Brown performed his responsibilities “with diligence, integrity, and distinction,” his lawyer, Alec Koch, said in a statement. Koch added that “we look forward to defending his reputation and correcting the inaccuracies in the SEC’s complaint.” Brown’s current title at SolarWinds is chief information security officer.
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