National Consumer News

Yahoo facing lawsuits and Senate Inquiry after data breach


Yahoo is facing multiple lawsuits after a data breach affected more than half a billion users, according to USA Today and Bloomberg.  The first lawsuit was filed the day after news broke about the data breach.

In one case, the plaintiff’s lawyers claim Yahoo “intentionally, willfully, recklessly, or negligently” failed to protect its systems and also failed to tell users that their data “was not kept in accordance with applicable, required, and appropriate cyber-security protocols, policies, and procedures,” in violation of the FTC Act and California law.

According to the Consumerist, members of the U.S. Senate want to know more about the breach and what account information was stolen.  The lawmakers sent a letter to Yahoo CEO Marissa Meyer asking specific questions about the breach.

“We are even more disturbed that user information was first compromised in 2014, yet the company only announced the breach last week,” the Senators write. “That means millions of Americans’ data may have been compromised for two years. This is unacceptable. This breach is the latest in a series of data breaches that have impacted the privacy of millions of American consumers in recent years, but it is by far the largest. Consumers put their trust in companies when they share personal and sensitive information with them, and they expect all possible steps be taken to protect that information.”

The Consumerist also reports Sen. Mark Warner (VA) asked the Security Exchange Commission to investigate if Yahoo met the requirements disclosed when responding to the breach.   Warner also asked the SEC chair Mary Jo White in a letter to investigate whether Yahoo made “complete and accurate” representation of its information security practices.  The SEC has been contacted because Yahoo is in the middle of a $4.8 billion deal with Verizon.

Earlier this month Yahoo told the SEC it had no knowledge of unauthorized access to users personal data and signed an agreement in July confirming no data loss or security breaches.

It’s unknown how the breach will impact Verizon’s purchase of Yahoo.


Photo by Justin Sullivan/Getty Images


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