SEC Enters New Cyber Era in Case Against SolarWinds, Exec

Securities Enforcement Defense attorney Scott Mascianica was quoted in a Law360 article about the shift that the U.S. Securities and Exchange Commission's (SEC) lawsuit against SolarWinds Corp. has caused in the agency's response to corporate data breaches. The article discusses the tougher stance that the SEC is taking on fraud and its first-ever civil claims against an executive in a cybersecurity disclosure suit. The commission sued SolarWinds and its Chief Information Security Officer for knowing about the company's weaknesses in their security for years, but defrauded investors by publicly pretending there were no issues.

The company has called the agency's allegations unfounded and vowed to fight the lawsuit. Mr. Mascianica stated that this marks the first time the SEC will be forced to litigate a cybersecurity disclosure case.

Mr. Mascianica said that the company has called the agency's allegations unfounded and vowed to fight the lawsuit, marking the first time the SEC will be forced to litigate a cybersecurity disclosure case.

"I don't think it's too much of a stretch to say that this will be one of, if not the most, significant cybersecurity case that SEC enforcement has ever filed," he added.

READ: SEC Enters New Cyber Era in Case Against SolarWinds, Exec