Federal Judge Denies SEC’s Bid to Regulate Corporate Cybersecurity in Landmark SolarWinds Case
NEW YORK — In a landmark decision, a federal judge in Manhattan ruled against the Securities and Exchange Commission’s (SEC) attempt to regulate corporate cybersecurity practices, settling a significant lawsuit centered around the extensive SolarWinds cyberattack. U.S. District Judge Paul A. Engelmayer concluded that the current statutory framework provides the SEC authority only over financial controls, not the broader scope of internal cybersecurity measures. This ruling came amid fears from various business sectors concerned about potential penalties from the SEC following breaches, particularly those executed by sophisticated hacking groups. Companies worried that stringent regulatory oversight … Read more