The US Securities and Exchange Commission has informed current and former SolarWinds executives that it intends to recommend “civil enforcement action” alleging the company broke federal securities laws in its public statements and “internal controls” related to the hack, SolarWinds said in a filing with regulators on Friday.
SolarWinds “will continue to explore a potential resolution of this matter before the SEC makes any final decision,” Ramakrishna said, adding that the SEC investigation could be a “distraction” to employees in the coming months. The SEC did not respond to CNN’s request for comment Friday night. The Biden administration has increasingly embraced regulation as a means of forcing big software providers and critical infrastructure firms to improve their cybersecurity practices.