The U.S. Securities and Exchange Commission's ("SEC") Division of Enforcement has recently brought a spate of enforcement actions relating to key topics for public companies. These include enforcement actions related to cybersecurity incident disclosure, director independence and Regulation Fair Disclosure ("Reg FD") violations, which are described below, and actions based on Section 13 and 16 beneficial ownership filings, as discussed in our prior alert.
Cyber Disclosure Enforcement Actions -
On October 22, 2024, the SEC announced charges against four companies for making materially misleading disclosures regarding cybersecurity. One company was also charged with disclosure controls and procedures violations. These actions all arose from the SEC's investigation of public companies that were potentially impacted by the compromise of SolarWinds Corp.'s' Orion software. The companies agreed to pay civil penalties ranging from $990,000 to $4 million.
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