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SEC Drops SolarWinds Cyber Case With Prejudice, Ending Fight With Company and CISO

The joint stipulation closes the case with prejudice, leaving broader questions about SEC cybersecurity enforcement unresolved.

Overview

  • On November 20, 2025, the SEC and defendants SolarWinds and CISO Timothy G. Brown filed a joint stipulation in SDNY to dismiss the remaining claims with prejudice.
  • The dismissal bars the SEC from rebringing similar claims tied to the Sunburst-era incidents and includes broad releases by the defendants of related claims against the SEC and its personnel.
  • The stipulation states the defendants relinquished any right to seek reimbursement of attorneys’ fees, expenses, or costs arising from their defense.
  • The SEC cautioned that this decision “does not necessarily reflect” its position in other matters, even as commentators say the move may signal a narrower appetite for cyber-related securities fraud cases.
  • A July 18, 2024 ruling by Judge Paul A. Engelmayer had already thrown out many SEC theories, leaving only narrow claims centered on a customer-facing Security Statement before the parties reported a settlement in principle in July 2025.