Ever since the U.S. Securities and Exchange Commission (“SEC”) filed the agency’s first-of-its-kind cyber disclosure case against SolarWinds, public companies have taken note of the unprecedented enforcement action. This case seeks to hold a public company and its Chief Information Security Officer (“CISO”) responsible for failing to warn the public about the chances of a cyber attack.
Notably, on February 2, 2024, the U.S. Chamber of Commerce along with the Business Roundtable filed an amicus brief in support of SolarWinds’s recently filed motion to dismiss in the Southern District of New York. The brief argues that perhaps what is most concerning about the SEC’s action is its expanded use of the internal control provisions to hold the defendants liable.
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