25.04.2018 03:36:50
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Altaba To Pay $35 Mln To Settle SEC Charges Over Massive Data Breach
(RTTNews) - The U.S. Securities and Exchange Commission said that Altaba Inc. (AABA), formerly known as Yahoo! Inc., has agreed to pay a $35 million penalty to settle charges that it misled investors by failing to disclose one of the world's largest data breaches in which hackers stole personal data relating to hundreds of millions of user accounts.
According to the SEC's order, within days of the December 2014 intrusion, Yahoo's information security team learned that Russian hackers had stolen what the security team referred to internally as the company's "crown jewels": usernames, email addresses, phone numbers, birthdates, encrypted passwords, and security questions and answers for hundreds of millions of user accounts.
Although information relating to the breach was reported to members of Yahoo's senior management and legal department, Yahoo failed to properly investigate the circumstances of the breach and to adequately consider whether the breach needed to be disclosed to investors. The fact of the breach was not disclosed to the investing public until more than two years later, when in 2016 Yahoo was in the process of closing the acquisition of its operating business by Verizon Communications, Inc.
Verizon acquired Yahoo's operating business in June 2017. Yahoo has since changed its name to Altaba Inc.
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