SolarWinds partial dismissal casts doubt on SEC Cybersecurity Rule
By 
Jeff Dale2024-08-07T14:33:00
A partial dismissal of charges levied by the Securities and Exchange Commission against Solarwinds has cast doubt about the breadth of the SEC's Cybersecurity Rule.
The SEC’s argument that a company’s “system of internal accounting controls” includes cybersecurity controls was “not tenable,” according to U.S. District Court Judge Paul Engelmayer for the Southern District of New York in his opinion and order, signed July 18.
“To state the obvious, cybersecurity controls are not–and could not have been expected to be–part of the apparatus necessary to the production of accurate” financial reports, the ruling stated.
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