SolarWinds Executives Receive Wells Notice from US SEC: Details Unveiled
In relation to the significant 2020 data breach associated with software firm SolarWinds, the company has revealed that some of its former and current executives have received a Wells notice from the U.S. Securities and Exchange Commission (SEC). It is important to note that a Wells notice does not imply any wrongdoing on the part of the recipients. The SEC issues Wells notices as a precursor to potential enforcement actions.
A SolarWinds spokesperson stated in an email that they are fully cooperating with the ongoing investigation, which appears to be progressing toward charges by the SEC against the company and its officers. The spokesperson affirmed that SolarWinds has consistently followed established cybersecurity controls and disclosure practices, maintaining compliance at all times.
The cybersecurity crisis in December 2020 revolved around SolarWinds, as hackers exploited the company’s software updates to gain unauthorized access to data from numerous organizations, including government offices and corporations. The U.S. government has attributed this breach to Russia.
In November of the previous year, the SEC had already recommended an enforcement action against SolarWinds concerning the company’s public statements on cybersecurity and its disclosure procedures. Further developments in this case are yet to unfold, and both SolarWinds and the executives involved have not made any official statements regarding the Wells notice.