On Oct. 22, 2024, the Securities and Exchange Commission (SEC) announced settled charges against four current and former public companies, Unisys, Avaya Holdings, Check Point Software Technologies and Mimecast, for allegedly making materially misleading statements in their public disclosures regarding cybersecurity intrusions and risks following the SolarWinds Corporation software hack. This wave of enforcement actions signals the SEC’s continued focus on the content and completeness of public disclosures following cyber incidents. In a press release, the SEC summarized its position that the settling issuers each “negligently minimized its [SolarWinds] cybersecurity incident,” which served to “further victimize their shareholders or other members of the investing public” and left “investors in the dark about the true scope of the incidents.”

Read on to learn more about the settlements and the takeaways worth considering.

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Photo of David Hirsch David Hirsch

Dave is a highly respected member of the securities enforcement and regulatory counseling practice group at McGuireWoods, where he plays a key role shaping the strategic direction of the firm’s securities enforcement initiatives. Before joining McGuireWoods, Dave was Chief of the Crypto Assets…

Dave is a highly respected member of the securities enforcement and regulatory counseling practice group at McGuireWoods, where he plays a key role shaping the strategic direction of the firm’s securities enforcement initiatives. Before joining McGuireWoods, Dave was Chief of the Crypto Assets and Cyber Unit in the SEC Division of Enforcement, and prior to that served as enforcement counsel to SEC Commissioner Crenshaw. He is a recognized expert and frequent speaker with a robust practice that spans a wide array of complex regulatory and enforcement matters, particularly those involving crypto and cyber.

Photo of Andrew Konia Andrew Konia

Andrew’s practice is singularly focused on protecting clients’ businesses and data, anticipating disputes, and strengthening their competitive position in the marketplace.

Photo of Jackie Wells Jackie Wells

Jackie Wells counsels financial institutions, broker-dealers, investment advisers and other public and private entities and executives in securities regulatory compliance and enforcement matters. She represents clients in inquiries involving the Financial Industry Regulatory Authority (FINRA), U.S. Securities and Exchange Commission (SEC), and other…

Jackie Wells counsels financial institutions, broker-dealers, investment advisers and other public and private entities and executives in securities regulatory compliance and enforcement matters. She represents clients in inquiries involving the Financial Industry Regulatory Authority (FINRA), U.S. Securities and Exchange Commission (SEC), and other federal and state regulators.

Photo of Camille Bachrach Camille Bachrach

Camille is a member of the firm’s Financial Services & Securities Enforcement Department. She represents corporate and individual clients in internal and government investigations as well as civil enforcement and regulatory matters involving the SEC and FINRA.