SEC Roundup 91: SolarWinds vs. SEC: The "Abrupt Surrender" That Shocked the Industry

Описание: The highly controversial SolarWinds cyber fraud case collapsed entirely. The SEC was forced to surrender its legal fight against the company and CISO Tim Brown, dismissing the case with prejudice—an outcome almost never seen in SEC litigation.

Hosts Nick Morgan and Thomas Zaccaro are joined by the CISO himself, Tim Brown, and the legal team who achieved this victory: Serrin Turner and Alec Koch. They detail the fierce legal strategy that dismantled the SEC’s case:

• The Initial Defeat: The defense prevailed on a massive motion to dismiss, crippling the aggressive claims and dismantling nearly all of the SEC’s allegations at the pleading stage.

• The Forced Retreat: The SEC alleged that the company had "pervasive failures" and attempted to regulate cybersecurity through the internal accounting controls provision. However, discovery and expert reports proved that SolarWinds routinely implemented its security practices, directly contradicting the SEC's central claims.

• Twisting Communications: The defense exposed how the SEC assembled evidence by taking candid internal documents about risk out of context, creating a chilling effect on internal security dialogue.

The complete, voluntary dismissal by the SEC, after being confronted with the facts of the litigation, sends a powerful message that the agency will need to be "much more circumspect" about bringing aggressive enforcement actions based on expansive legal theories.

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