On October 30, 2023, the Securities and Exchange Commission (the “SEC”) filed a civil lawsuit charging SolarWinds Corporation (“SolarWinds” or the “Company”) and its chief information security officer, Timothy G. Brown (“Brown”), with securities fraud, internal controls failures, misleading investors about cyber risk, and disclosure controls failures, among other violations. The SEC’s claims arise from allegedly known cybersecurity risks and vulnerabilities at SolarWinds associated with the SUNBURST cyberattack that occurred between 2018 and 2021.
Five Key Takeaways from the SEC’s Final Cybersecurity Rules for Public Companies
On July 26, 2023, the SEC finalized long-awaited disclosure rules (the “Final Rules”) regarding cybersecurity risk management, strategy, governance, and incidents by public companies that are subject to the reporting requirements of the Securities Exchange Act of 1934. While the end results are substantially similar to rules proposed by the SEC in March 2022, there are some key distinctions.
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Impacts of the National Cybersecurity Strategy on Government and Private Sector Collaboration
On March 2, 2023, the Biden-Harris Administration released the National Cybersecurity Strategy.[i] The highly anticipated Strategy has illuminated that a more overt and aggressive approach to mitigating cyber risks may be necessary to drive real change, leading to the anticipation of increased communication and partnerships between private companies and government agencies.[ii] The
Biden Administration Releases Comprehensive National Cybersecurity Strategy
On March 2, 2023, the Biden Administration released the 35-page National Cybersecurity Strategy (the “Strategy”) with a goal “to secure the full benefits of a safe and secure digital ecosystem for all Americans.”
Summary and Analysis
The Strategy highlights the government’s commitment to investing in cybersecurity research and new technologies to protect the nation’s security
Cyber and Physical Attacks on the Electric Grid Should Prompt New Year’s Resolutions for the Energy Industry
This has not been a joyful winter for energy industry executives. They have repeatedly awoken to alerts that substations in the Northwest and Southeast have been physically attacked and that a major engineering firm was the subject of a ransomware cyberattack that may have compromised utility data.
Federal regulators are taking notice. On December 7
SAFETY ACT LIABILITY PROTECTIONS WILL BE TESTED
After over a decade, the first action has been filed that may test the bounds of the Support Anti-Terrorism by Fostering Effective Technologies Act (“SAFETY Act”) of 2002. MGM Resorts International recently filed suit related to the October 2017 Mandalay Bay country music concert shooting, asking a federal court to rule that it cannot be
Colorado’s New Data Privacy Bill Increases Notification and Safeguarding Requirements
The Colorado legislature recently passed a new data privacy law, House Bill 18-1128, which heightens requirements for corporate and public entities handling personal information of Colorado residents. Effective September 1, 2018, the law aims to strengthen consumer data privacy by 1) shortening the time frame required to notify affected Colorado residents and the Attorney
Seventh Circuit Revives Data Breach Case Despite No Evidence Of Monetary Harm
The U.S. Court of Appeals for the Seventh Circuit (the “7th Circuit”) recently issued an opinion in Heather Dieffenbach, et al. v. Barnes & Noble, Inc. that is potentially concerning for current and potential defendants in class action claims related to data breaches. The case relates to a 2012 incident where Barnes & Noble discovered
FERC Proposes to Require Expanded Cyber Security Incident Reporting
The Federal Energy Regulatory Commission (“FERC”) recently proposed that the North American Electric Reliability Corporation (“NERC”), which is responsible for promulgating and enforcing FERC-approved mandatory electric reliability standards, revise its Critical Infrastructure Protection (“CIP”) standards to require additional circumstances under which reporting of cybersecurity incidents is mandatory. FERC’s goal is to enhance the awareness of
Privacy & Cybersecurity Weekly News Update – Week of August 28
Bavarian DPA: fines under GDPR to be calculated based on revenues of whole company group; ICO publishes report on data security incident trends.
Bavarian DPA: fines under GDPR to be calculated based on revenues of whole company group
On September 01, 2016, the German Data Protection Authority of Bavaria (BayLDA) has announced that according to their understanding, sanctions under the GDPR will be calculated based on the revenue of a whole company group. According to the authority, this should apply even when only one single entity is responsible for an incident.
In its position paper, the BayLDA elaborates that fines under the GDPR have to be “effective, proportionate, and dissuasive.” For most infringements, the fine can amount up to a maximum of either € 10 million, or 2% of the company’s annual global turnover (the higher will apply). For serious infringements, the fine can even amount up to the higher of € 20 Million or 4% of the respective turnover. The turnover will comprise of the turnover of the whole company group a company belongs to, according to recital 150 of the preamble, which relates to the “economic concept of an undertaking”.
Although the BayLDA’s position paper is non-binding, the interpretations and views published can nevertheless be considered very important hints on how in particular the German Data Protection authorities will interpret and enforce the new Regulation, which will enter into force on 25 May 2018. The European Data Protection Board, a group of representatives of the EU Member States (currently known as Article 29 Working Party), is expected to issue guidelines on the calculation of fines.
Continue Reading Privacy & Cybersecurity Weekly News Update – Week of August 28