The SolarWinds Cyber-Attack – The Devastation and Wreckage
Posted March 10, 2021
- In a recent 10-K disclosure, SolarWinds announced that it is the subject of ongoing investigations conducted by the Department of Justice, the Securities and Exchange Commission, and various state attorneys general focused on the cyberattack on its software.
- Given the high-profile nature of the cyber-attack, DOJ and state enforcement actions are likely to seek relatively large settlements. The E.U. will follow suit to underscore the importance of proactive security strategies.
- SolarWinds’ 10-K filing reflects the devastating impact a cyber-attack can have on a business.
- By the end of 2020, SolarWinds has incurred over $3 million in expenses. These costs are likely to increase substantially as SolarWinds completes its investigation, remedies deficiencies in its cyber protection solutions. Further, SolarWinds will incur legal and consulting expenses as it navigates the government enforcement and private litigation costs.
JDSupra – Michael Volkov | March 10, 2021