Companies SolarWinds Corp FollowNov 3 (Reuters) - The U.S. Securities and Exchange Commission has recommended an enforcement action against SolarWinds Corp (SWI.N) over its public statements on cybersecurity and procedures governing such disclosures, the software firm said on Thursday.
SolarWinds said Thursday it had received a Wells notice from the SEC alleging the company violated U.S. securities law "with respect to its cybersecurity disclosures and public statements, as well as its internal controls and disclosure controls and procedures."
SolarWinds said it will respond to the notice, and "maintains that its disclosures, public statements, controls and procedures were appropriate."
Investors sued SolarWinds in 2021, alleging the company and two executives touted cybersecurity measures publicly while prioritizing cost cutting and profit for SolarWinds' two largest investors.
The case is Bremer v. SolarWinds Corp et al., No.