Cisco CLO Says $8.6M Settlement Over Security Flaws Signals 'Changed Environment'
Cisco chief legal officer Mark Chandler said in a blog post that the settlement of a security flaws whistleblower case is a sign "standards by which suppliers are judged are ... changing."
August 02, 2019 at 01:00 AM
3 minute read
The original version of this story was published on Corporate Counsel
The top lawyer at Cisco Systems Inc. said Wednesday the company’s $8.6 million settlement over alleged security flaws marks a “new environment” and heightened standards for software providers.
The qui tam case brought against Cisco, settled Wednesday, alleged the company failed to disclose possible security flaws in video surveillance software it sold to various U.S. government entities from 2008 to 2014. Plaintiff James Glenn, a former Denmark-based employee of Cisco partner company NetDesign, allegedly alerted Cisco to security flaws in 2008.
He alleged the flaws could allow hackers to access passwords and stored data and delete video feeds. A Cisco representative said there has been ”no allegation or evidence that any unauthorized access to customers’ video occurred as a result of the architecture.”
Mark Chandler, chief legal officer of San Jose, California-based Cisco, said in a blog post the settlement—reached with “no evidence that any customer’s security was ever breached”—is a sign “standards by which suppliers are judged are … changing.”
“Nothing illustrates better the way standards are changing than our engagement in resolving a dispute involving video security software products sold by us in Cisco’s fiscal years 2008 through 2013,” Chandler said in the post, titled “A Changed Environment Requires a Changed Approach.” ”In short, what seemed reasonable at one point no longer meets the needs of our stakeholders today.”
The software product at the heart of the case was acquired by Cisco in 2007 through its acquisition of original developer Broadware.
Chandler said Broadware intentionally designed Video Surveillance Manager with an open architecture to allow customization, a structure that meant “video feeds could theoretically have been subject to hacking.”
“Evaluating these facts today, we’ve now agreed to make a payment that includes, what is in effect, a partial refund to the US federal government and 16 states for products purchased between Cisco’s fiscal years 2008 and 2013,” said the CLO.
He noted Cisco urged users to build additional security features to software licensed from the company in a 2009 best practices guide. In 2013, Cisco issued a software upgrade that “addressed security features. The company stopped selling Video Surveillance Manager the following year.
“While this is a legacy issue which no longer exists, it matters to us to recognize that times and expectations have changed,” Chandler said.
Read More:
Cisco Settles Whistleblower Suit Over Alleged Security Flaws for $8.6M
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllTrending Stories
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250