With almost every sendmail version that was built before February 1995, a malicious user can gain unauthorized privileges by exploiting newlines in command-line arguments or in the process environment. Intruders need to have access to an account on your system to exploit this problem.
In addition, pre-8.6.10 versions of sendmail that support IDENT (RFC 1413) functionality have a problem that could allow an intruder to gain unauthorized access to your system remotely (that is, without having access to an account on the system).