SEC Charges 4 Companies Over Misleading SolarWinds Cyber Attack Disclosures
Oct 25, 2024
Regulatory Compliance / Data Breach
The U.S. Securities and Exchange Commission (SEC) has charged four current and former public companies for making "materially misleading disclosures" related to the large-scale cyber attack that stemmed from the hack of SolarWinds in 2020 . The SEC said the companies – Avaya, Check Point, Mimecast , and Unisys – are being penalized for how they handled the disclosure process in the aftermath of the SolarWinds Orion software supply chain incident and downplaying the extent of the breach, thereby infringing the Securities Act of 1933, the Securities Exchange Act of 1934, and related rules under them. To that end, Avaya will pay a fine of $1 million, Check Point will pay $995,000, Mimecast will pay $990,000, and Unisys will pay $4 million to settle the charges. In addition, the SEC has charged Unisys with disclosure controls and procedures violations. "While public companies may become targets of cyberattacks, it is incumbent upon them to not further victimize their sh