The Morning Risk Report: Extreme Networks to Pay $2.5 Million Over Sales to Russian Missile Maker

A facts-only brief, written by a local AI model from this article in The Wall Street Journal, October 28, 2026. It may contain mistakes, and it is not the article: the full story is at wsj.com.

Extreme Networks agreed to pay approximately $2.5 million to resolve allegations that it violated U.S. sanctions by selling technology to a Russian missile manufacturer. The Nasdaq-listed firm settled with federal prosecutors and the financial regulator responsible for enforcing economic sanctions, admitting to misconduct involving sales to MMZ Avangard. Federal authorities determined the company did not voluntarily self-report because it disclosed the issue only after learning of an upcoming news report in October 2022. Prosecutors noted the firm fully cooperated with the investigation, which qualified for a reduced criminal fine under a new corporate policy.

Background

• The settlement included over $975,000 in criminal penalties and forfeiture, plus more than $1.5 million in civil fines.
• The financial regulator characterized the violations as egregious, while prosecutors cited the company’s timely response to subpoenas and availability of overseas employees for interviews.
• A spokesperson stated the firm conducted a comprehensive review and implemented new compliance policies following the resolution.

Read the full article at wsj.com

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