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US SEC and SolarWinds Reach Preliminary Settlement in Cyberattack Lawsuit

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The U.S. Securities and Exchange Commission (SEC) has reached a deal in principle with SolarWinds Corp and its chief information security officer, Timothy Brown, to settle litigation related to a Russia-linked cyberattack on the software company. The agreement was revealed in a court filing on Wednesday.

SolarWinds, the SEC, and Brown jointly requested a federal judge to pause court proceedings while they finalize the settlement paperwork, which the judge approved. The case centers around the “Sunburst” cyberattack, which lasted two years and targeted SolarWinds, based in Austin, Texas.

The SEC accused the company and its security officer of defrauding investors by hiding security vulnerabilities. However, much of the SEC’s case was dismissed last year by U.S. District Judge Paul Engelmayer, who criticized the claims as relying on hindsight and speculation.

Both the SEC and SolarWinds declined to comment on the settlement details beyond public filings. SolarWinds expressed satisfaction with the potential resolution and a desire to focus on its business operations moving forward.

The parties plan to file the final settlement documents or a joint status report by September 12.

Cyberattack on Brazil Tech Provider Disrupts Reserve Accounts of Several Financial Institutions

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Brazil’s central bank revealed on Wednesday that C&M Software, a technology services provider catering to financial institutions without their own connectivity infrastructure, suffered a cyberattack targeting its systems. In response, the central bank ordered C&M to suspend access to the infrastructure it manages for these institutions.

Kamal Zogheib, C&M Software’s commercial director, confirmed the company was a direct victim of the attack, which involved fraudulent use of client credentials to try to access its services. Despite the breach, C&M said its critical systems remain intact and fully operational, with all security protocols activated. The company is working closely with the central bank and Sao Paulo state police as investigations continue.

Brazilian financial institution BMP and five other banks reported unauthorized access to their reserve accounts during the Monday attack. These reserve accounts, held directly at the central bank, are used solely for interbank settlements and are separate from client accounts, which were unaffected. BMP stated it has taken appropriate operational and legal measures and holds sufficient collateral to cover any impacted amounts, ensuring no disruption to its operations or partners.

An anonymous official indicated C&M services about two dozen smaller financial institutions, and the financial impact of the attack does not reach billions of reais. Another source confirmed no losses were sustained by clients.

The central bank refers to these affected entities as “financial institutions lacking their own connectivity infrastructure,” including many digital payment providers that have grown rapidly in Brazil. The Pix instant payment system, operated by the central bank since late 2020, has become the country’s most popular payment method, driving competition and innovation in the sector.

M&S CEO: Cyberattack Fallout Will Largely Be Over by August

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Marks & Spencer CEO Stuart Machin told shareholders on Tuesday that the British retailer expects to be past the worst effects of a major cyberattack by August, as the company works to restore operations and rebuild consumer trust.

The April cyberattack dealt a serious blow to the company, causing a £300 million ($413 million) hit to profit. It forced M&S to shut down its online store for nearly seven weeks, disrupted stock automation systems, and led to empty shelves in stores during May.

Speaking at M&S’s annual shareholder meeting, Machin said: “I’m really hoping by August, the majority of this is behind us.” This marked the first opportunity for investors to question leadership directly about the incident and its aftermath.

Questions over preventability and accountability were front and center. When asked if the cyberattack could have been prevented, Chairman Archie Norman acknowledged that “there’s always something that could be done” and that M&S continues to examine the details of the breach. Machin added that the attack exploited a third-party contractor via a social engineering tactic.

The CEO defended M&S’s prior cyber readiness, noting that the company had quadrupled its investment in cybersecurity and tripled the size of its cybersecurity team in the year leading up to the breach. “I’m glad we invested then. I’m glad we continue to invest,” Machin said.

One shareholder raised concerns about executive accountability, questioning whether Machin’s £7.1 million pay package, which rose 39% last year, should be reduced in light of the incident. Norman responded that incentive pay was tied to shareholder outcomes and that it was too early to determine adjustments.

Currently, the M&S online store is still only partially operational, with full restoration expected within four weeks. Automation systems at the Donington logistics hub are also expected to be fully functional by August, according to Machin.

In the meantime, the company is focused on reinforcing internal training to defend against further attacks and to bolster awareness of social engineering vulnerabilities.