A federal judge recently rejected a bid by the Securities and Exchange Commission to regulate corporate cybersecurity controls. The decision came in a case involving SolarWinds, a company that was the victim of a major cyberattack in 2020. The judge ruled that the SEC only has authority over financial controls, not all internal controls. This decision was seen as a relief for companies concerned about potential penalties for breaches by hackers. The judge’s ruling stated that the SEC’s broad interpretation of the law could have far-reaching implications beyond financial controls. While the case has not been entirely dismissed, SolarWinds expressed gratitude for the industry’s support. The SEC will have the opportunity to pursue claims of securities fraud against SolarWinds and a top security executive for allegedly making false statements about the company’s cybersecurity measures.
Vocabulary List:
- Regulate /ˈrɛɡ.jʊ.leɪt/ (verb): To control or supervise by means of rules or regulations.
- Cybersecurity /ˌsaɪ.bər.sɪˈkjʊr.ə.ti/ (noun): The practice of protecting systems networks and programs from digital attacks.
- Authority /əˈθɔːr.ɪ.ti/ (noun): The power or right to give orders make decisions and enforce obedience.
- Implications /ˌɪm.plɪˈkeɪ.ʃənz/ (noun): Suggestions or consequences that may not be directly stated.
- Concerns /kənˈsɜːrnz/ (noun): Worries or anxieties about something.
- Securities /sɪˈkjʊər.ɪ.tiz/ (noun): Financial instruments that hold some monetary value and can be traded.
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