Navigating Risk After SolarWinds Enforcement Dismissal

According to an article by Sarah F. Hutchins, Robert M. Botkin, and Susie Lloyd of Parker Poe, the dismissal of the remaining claims in the SEC’s high-profile SolarWinds enforcement action marks a significant, though nuanced, moment for corporate compliance. 

On November 20, 2025, the SEC filed a joint stipulation with SolarWinds Corp. and its CISO, Timothy Brown, to dismiss the case with prejudice, following a July 2024 ruling that had already rejected most of the commission’s allegations while allowing a narrow slice of securities fraud claims to proceed. The SEC emphasized that this dismissal, made “in the exercise of its discretion,” should not be interpreted as signaling any broader policy change regarding cybersecurity enforcement.

The SolarWinds action was a landmark for the SEC: it represented the agency’s first cybersecurity enforcement against a corporate executive and the first use of intentional fraud charges tied to cybersecurity disclosures. 

While SolarWinds expressed hope that the dismissal would reduce the “chilling effect” on CISOs and cybersecurity reporting, the commission provided no further explanation for its decision. This lack of detail leaves companies without clear guidance on whether evidentiary, strategic, or resource considerations influenced the outcome, underscoring the need for compliance teams to avoid assuming leniency in future cases.

For compliance professionals, several takeaways are clear. Cybersecurity disclosures and public-facing statements remain under close scrutiny, and internal communications must align with external filings to avoid misrepresentation. The SEC continues to focus on executive accountability and risk assessments, making vigilance essential in both formal and informal communications. Finally, the discretionary nature of enforcement decisions means companies should expect uncertainty in the SEC’s strategy, reinforcing the importance of robust internal controls and careful documentation to manage ongoing regulatory risk.

The SolarWinds enforcement dismissal does not diminish broader regulatory expectations; instead, it underscores the need for careful compliance oversight and continuous alignment between internal awareness and public disclosures.