Coverup Investigation In Yahoo Data Breach

Yahoo suffered two massive data breaches in 2013 and 2014, but it didn’t report them until September and December of last year. Information pertaining to 1.5 billion customers was said to be compromised. Now regulators are swarming over the company, which is also facing more than a dozen class action lawsuits. In an SEC filing, the company said it is cooperating with federal, state, and foreign officials and agencies, including some state attorneys general, the Federal Trade Commission, and notably the SEC. “The Yahoo probe comes amid widespread uncertainty over what companies must do if they are hacked,” says this article in Fortune. “While there are laws about disclosure, they vary from state to state, and the SEC only offers untested guidelines.” The possible effect on investors in this case is particularly stark because the company has been in merger negotiations with Verizon, and the release of news regarding the breach has pushed down the company’s value and compromised its negotiating position.