Judge Guts SEC Case Against SolarWinds Over Cyber Practices

  • Ruling seen as blow to SEC’s efforts to regulate cybersecurity
  • Russian hackers installed malicious code in SolarWinds update
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A US federal judge dismissed much of the Securities and Exchange Commission’s lawsuit against SolarWinds Corp. that alleged the software provider misled investors about its cybersecurity practices and the significance of a major data breach that spilled into the US government.

Thursday’s ruling was seen as a blow to the SEC’s aggressive efforts to regulate the cybersecurity practices of publicly traded companies, actions that had created significant angst among the private sector and from security practitioners.