Yahoo pays $35 million penalty to settle S.E.C. charges of misleading investors by failing to disclose data breach of 500 mill. users

Verizon Communications, Inc. bought Yahoo’s operating business in June 2017. After the acquisition, Yahoo became known as Altaba Inc. Yahoo is still one of the world’s largest internet media companies providing over one billion users worldwide with products and services. The company is publicly traded. In addition to the failure of Yahoo to disclose the data breach to the investors, Yahoo’s senior management did not disclose information about the breach with Yahoo’s auditors or outside counsel. During the internal investigation, the company’s Chief Security Officer concluded that Yahoo’s entire user database, including the personal data of its users, had likely been stolen by nation-state actors through several hacker intrusions. Despite this information, which was communicated to a senior management person, nothing was said to anyone outside the company and Yahoo affirmatively represented to Verizon that it was unaware of any security breaches in its stock purchase agreement.

Jeffrey Newman represents whistleblowers