IT Company to Pay $26 Million in Class Action Lawsuit Over 2020 Cyberattack

IT software giant SolarWinds has agreed to pay $26 million to settle a securities class action lawsuit filed by shareholders over the cyberattack on the company’s Orion software platform and internal systems that was discovered in late 2020.

The technology giant disclosed the settlement in a regulatory filing on Nov. 3 and also warned it has received notice from the Securities and Exchange Commission that the regulator has made a preliminary decision to file an enforcement action against the company over the cyber breach.

“SEC staff has made a preliminary determination to recommend that the SEC file an enforcement action against the Company alleging violations of certain provisions of the U.S. federal securities laws with respect to its cybersecurity disclosures and public statements, as well as its internal controls and disclosure controls and procedures,” SolarWinds disclosed in its 8-K filing. 

Read the source article at fedscoop.com