Recently, a major tech company, SolarWinds, found itself in the legal spotlight when a judge made a significant decision regarding a serious accusation. The case revolves around claims that the company wasn’t honest about its defenses against cyberattacks.

To start with the positive, the bulk of the charges that the Securities and Exchange Commission (SEC) brought against the company were dismissed. That means that some of the things the SEC accused SolarWinds of doing wrong were not accepted by the court. However, it wasn’t all good news for the company. There’s one accusation that’s pretty serious, and it’s going to trial: securities fraud.

Securities fraud is a big deal. It’s about making sure companies are truthful to their shareholders. If a company makes false claims about how well it can protect itself from cyber threats, it could mislead people who have invested money into thinking the company is safer than it really is.

The judge was quite stern. He pointed out that SolarWinds made claims about their cyber defenses that weren’t true. Imagine a company saying it has super-secure passwords only to find out one of its passwords was literally ‘password.’ This wasn’t just a minor issue; it was a serious mistake because SolarWinds sells software where security is super important.

SolarWinds’ Chief Information Security Officer (CISO) was also mentioned. The judge said he should have known better and that by approving messages that weren’t accurate, he wasn’t being careful enough.

Now, if you’re a CISO or an executive in charge of security at your company, this is a wake-up call. You need to be extra sure that what you tell the world about your company’s security is 100% spot on. That includes conversations with the board, management, and information shared with investors. This case shows that making public claims that are not correct can come back to haunt you.

In the end, companies are being reminded to watch their words and the way they describe their security measures. Any statements they make could be used against them if a security breach happens in the future.

For those who lead or manage their company’s cybersecurity, it’s wise to work with legal and communication experts. Ensure there’s no gap between how you publicly describe your security and the real story.

If you’re feeling a little nervous about this or wondering how to handle these kinds of issues, my company can help. Diversified Outlook Group offers guidance in navigating the complexities of cybersecurity and legal concerns. You can get in touch with us at support@diversifiedoutlookgroup.com for more info.

For detailed reading on the SolarWinds case, visit: www.csoonline.com/article/2810058/federal-judge-greenlights-securities-fraud-charges-against-solarwinds-and-its-ciso.html