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SEC Drops Landmark Cyber Case Against SolarWinds

By Kim S. Nash

 

Hello. The U.S. Securities and Exchange Commission dismissed its case against SolarWinds on Thursday, ending a yearslong legal battle that had unnerved the cybersecurity industry.

Also gone are the allegations against SolarWinds Chief Information Security Officer Tim Brown. The agency's 2023 lawsuit was the first time securities regulators went to court with civil-fraud claims against a public company that suffered a cyberattack. Read our full story. 

More news: 

  • Germany's Merck warns of email scam targeting pharmacies
  • More breaches of Salesforce, Oracle customers
  • Zuckerberg and other Meta execs pay $190 million to settle shareholder privacy suit
  • Arrests in case of illegal export of Nvidia chips to China
  • And more 
 

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More Cyber News

PHOTO: RALPH ORLOWSKI/REUTERS

German conglomerate Merck KGaA is notifying pharmacies of a business email compromise scheme that has diverted payments for pharmaceuticals to fraudulent bank accounts. Scammers have emailed fake invoices requesting funds sent to accounts in Spain. (Munich Eye)

Another Salesforce-related breach: Customer relationship management vendor Salesforce warned of "unusual activity" in add-on applications built with Gainsight tools that could allow unauthorized access to customers' Salesforce data. Salesforce is investigating and said the breaches weren't of its own technology. 

  • Similar compromises of Salesforce add-on tools from another company, Salesloft, affected several customers in August. 

And another Oracle-breach victim: Atlanta-based Cox Enterprises disclosed to state regulators that customer data was stolen in August when its Oracle E-Business Suite was hacked. The company owns telecom provider Cox Communications and Cox Automotive, which provides services to the used-car industry. 

  • Ransomware group Clop claimed responsibility for the cyberattack, which has also hit Harvard University, the Washington Post and American Airlines unit Envoy Air, among others. 

One way to do it: Thai lawmakers have banned government texts and emails from including embedded links to help residents differentiate legitimate communications from scams. The country's financial institutions put a similar ban in place in July. (Nation Thailand)

PHOTO: JEENAH MOON

/REUTERS

The Palo Alto Networks plan to buy AI-monitoring firm Chronosphere for $3.35 billion surprised Wall Street. Some analysts noted that Chronosphere tech isn't as capable as that of rivals Datadog and Dynatrace. (Investor's Business Daily)

California’s privacy regulator to monitor data brokers. A new unit in the California Privacy Protection Agency’s enforcement division plans to check whether data brokers are complying with  registration rules and the state's strict privacy law. (Dow Jones Risk Journal) 

$190 Million

Amount that Mark Zuckerberg and current and former Meta executives agreed to pay to settle a shareholder lawsuit over alleged harm to the company from violations of Facebook users' privacy. (Reuters)

Alt text.

Watch: How Microsoft Leverages AI for Rapid Crisis Response

Microsoft Chief Compliance Officer Frank X. Shaw explains how AI tools are transforming crisis communications and how the company used the tech during the 2024 CrowdStrike software outage.

Watch Now
 

Enforcement

  • Two U.S. citizens and two Chinese nationals living in the U.S. were charged with conspiracy to illegally export Nvidia chips to China. The four, who were arrested this week in Florida, Alabama and California, falsified paperwork, made fake contracts and misled U.S. authorities, according to an indictment unsealed by the Justice Department. 
  • Insider threat: A tech contractor in Ohio pleaded guilty to hacking his former employer in 2021 after being fired. He locked employees out of the company network by resetting their passwords and erased system logs, causing more than $862,000 in damages, the Justice Department said. He faces up to 10 years in prison and is due to be sentenced in January. 
 

About Us

The WSJ Pro Cybersecurity team is Deputy Bureau Chief Kim S. Nash and reporters Angus Loten and James Rundle. Follow us on X @WSJCyber. Reach the team by replying to any newsletter you receive or by emailing Kim at kim.nash@wsj.com.

 
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