The SEC fined Flagstar Financial $3.55 million for misleading disclosures about a 2021 data breach, emphasizing the importance of truthful incident reporting. This ruling, along with penalties against IT companies for SolarWinds-related breaches, underscores the SEC’s scrutiny of cybersecurity disclosures. Companies, regardless of jurisdiction, should prioritize transparent and mature processes for incident reporting to protect stakeholders and avoid regulatory consequences.
Edward Kiledjian
@ekiledjian