CNN —
The chief executive of US software firm SolarWinds told employees Friday that “we intend to vigorously defend ourselves” in the face of potential legal action from US regulators over the firm’s handling of a sweeping 2020 breach by alleged Russian hackers, according to an internal SolarWinds email obtained by CNN.
The US Securities and Exchange Commission has informed current and former SolarWinds executives that it intends to recommend “civil enforcement action” alleging the company broke federal securities laws in its public statements and “internal controls” related to the hack, SolarWinds said in a filing with regulators on Friday.
The hackers – who the Biden administration said worked for the Russian foreign intelligence service – allegedly used SolarWinds software to access the unclassified email networks of the departments of Justice, Homeland Security and other agencies in a cybersecurity and counterintelligence failure that US officials vowed to rectify.
The SEC notice is an indication that US regulators are moving closer to bringing a civil lawsuit against SolarWinds that could result in fines or other penalties. A so-called Wells notice from the enforcement agency is not a formal charge or determination that a defendant broke the law.
“Despite our extraordinary measures to cooperate with and inform the SEC, they continue to take positions we do not believe match the facts,” SolarWinds CEO Sudhakar Ramakrishna said in the email to employees.
SolarWinds “...
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