DarkReading.com reported that “The US Securities and Exchange Commission (SEC) appears poised to take enforcement action against SolarWinds for the enterprise software company’s alleged violation of federal securities laws when making statements and disclosures about the 2019 data breach at the company.” The November 7, 2022 article entitled “SolarWinds Faces Potential SEC Enforcement Act Over Orion Breach” (https://tinyurl.com/5b95w2tx) included these comments:
If the SEC were to move forward, SolarWinds could face civil monetary penalties and be required to provide “other equitable relief” for the alleged violations. The action would also enjoin SolarWinds from engaging in future violations of the relevant federal securities laws.
SolarWinds disclosed the SEC’s potential enforcement action in a recent Form 8-K filing with the SEC. In the filing, SolarWinds said it had received a so-called “Wells Notice” from the SEC noting that the regulator’s enforcement staff had made a preliminary decision to recommend the enforcement action. A Wells Notice basically notifies a respondent about charges that a securities regulator intends to bring against a respondent, so the latter has an opportunity to prepare a response.
SolarWinds maintained that its “disclosures, public statements, controls, and procedures were appropriate.” The company noted that it would prepare a response to the SEC enforcement staff’s position on the matter.
No surprise and this SEC plan makes a lot of sense to me, what do you think?