Yahoo! Inc (NASDAQ: YHOO) Investor Securities Class Action Lawsuit 01/24/2017
January 24, 2017 - An investor in shares of Yahoo! Inc (NASDAQ: YHOO) filed a lawsuit in the U.S. District Court for the Northern District of California over alleged violations of Federal Securities Laws by Yahoo! Inc in connection with certain allegedly false and misleading statements made between November 12, 2013 and December 14, 2016.
According to the complaint the plaintiff alleges on behalf of purchasers of Yahoo! Inc (NASDAQ: YHOO) common shares between November 12, 2013 and December 14, 2016, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between November 12, 2013 and December 14, 2016, the defendants made false and/or misleading statements and/or failed to disclose that Yahoo! Inc failed to encrypt its users' personal information and/or failed to encrypt its users' personal data with an up-to-date and secure encryption scheme, that consequently, sensitive personal account information from more than 1 billion users was vulnerable to theft, that a data breach resulting in the theft of personal user data would foreseeably cause a significant drop in user engagement with Yahoo! Inc's websites and services, and that as a result, Yahoo! Inc's public statements were materially false and misleading at all relevant times.
On September 22, 2016, Yahoo! Inc revealed that a “recent investigation” confirmed that sensitive personal account information of at least 500 million account users “was stolen from the company’s network in late 2014 by what it believes is a state-sponsored attack.” Reportedly users’ names, email addresses, phone numbers, dates of birth, hashed passwords, and in some encrypted or unencrypted security questions and answers were included in the data breach.
A class action lawsuit has been filed against Yahoo! Inc regarding security breach affecting nearly 500 million users. The complaint alleges that Yahoo! Inc’s actions were reckless as they disregarded the safety and security of Yahoo users’ personal information. The complaint claims that Yahoo! Inc should be held responsible for their insufficiencies and the damages caused to its users. Unlike several other recent data breaches, Yahoo! Inc has not offered users any assistance with identity theft protection, while Yahoo! Inc users are now at a greater risk of having their identities stolen and must find their own way and pay to protect themselves.
On December 14, 2016, Yahoo! Inc announced that it had uncovered a data breach, stating that data from more than 1 billion user accounts was compromised in August 2013.