In
a press release dated October 30, the SEC said that from the company’s IPO (initial public offering) in October 2018 until December 2020, when it revealed that it had been the victim of a
cyber attack, SolarWinds had defrauded investors by overstating its cybersecurity practices and downplaying the risks it faced.
The attack, known as SUNBURST, compromised the company’s Orion IT monitoring and management software, enabling the attackers, the
Russian nation-state group Nobelium, to push malicious updates to SolarWinds customers, affecting tens of thousands of organizations, including the U.S. government. It was one of the biggest supply-chain attacks ever recorded.
However, according to the SEC, the company’s SEC filings “allegedly misled investors by disclosing only generic and hypothetical risks at a time when the company and Brown knew of specific deficiencies in SolarWinds’ cybersecurity practices as well as the increasingly elevated risks the company faced at the same time.”