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SEC Drops SolarWinds Suit, Ending Rare Case Targeting a CISO

The commission described the dismissal as a discretionary step that does not set a broader precedent.

Overview

  • In a joint motion filed November 20, the SEC, SolarWinds, and CISO Timothy G. Brown asked a federal court to dismiss the civil enforcement action.
  • The SEC offered no detailed explanation for the move, saying only that it acted in the exercise of its discretion and that the decision does not speak to other matters.
  • The 2023 lawsuit had alleged investor misstatements about security practices and disclosures tied to the 2019–2020 Sunburst supply‑chain breach that reached federal agencies and major companies.
  • A U.S. judge in July 2024 largely set aside the commission’s allegations, undercutting the viability of the case.
  • SolarWinds welcomed the outcome as vindication and said it could ease CISO concerns about a chilling effect on voluntary cyber disclosures.