NEW YORK (Reuters) – A U.S. judge dismissed much of the U.S. Securities and Exchange Commission’s lawsuit accusing software company SolarWinds of defrauding investors by hiding security weaknesses before and after a massive cyberattack targeting the U.S. government.
U.S. District Judge Paul Engelmayer in Manhattan said the SEC can pursue a securities fraud claim based on a statement on SolarWinds’ website prior to the so-called Sunburst attack about the company’s cybersecurity practices.
He dismissed all other claims based on pre-Sunburst disclosures, and said all claims regarding post-Sunburst disclosures were based on “hindsight and speculation” and also required dismissal.
(Reporting by Jonathan Stempel in New York)
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