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SEC charges SolarWinds and company executive with fraud after cybersecurity breach

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Bill Peters is a Los Angeles-based MarketWatch reporter who covers earnings.

The Securities and Exchange Commission on Monday charged software company SolarWinds Corp. SWI, -1.59% and its chief information security officer with fraud and the failure to fully disclose weaknesses in the company’s cybersecurity protocols.

” The SEC’s complaint alleges that despite warnings from employees, Brown “failed to resolve the issues or, at times, sufficiently raise them further within the company.” Gurbir Grewal, director of the SEC’s enforcement division, alleged in a statement that “for years, SolarWinds and Brown ignored repeated red flags about SolarWinds’ cyber risks, which were well known throughout the company and led one of Brown’s subordinates to conclude: ‘We’re so far from being a security minded company.

 

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