The Strategist

Altaba to pay $ 35 mln to get rid of SEC’s claims

04/25/2018 - 14:31

Altaba Inc. (former Yahoo! Inc.) will pay $ 35 million to settle claims of the Securities and Exchange Commission (SEC), which considered that the company misled investors, without disclosing the information about the major hacker attack, a victim of which Yahoo! became.

Yahoo Inc via flickr
Yahoo Inc via flickr
"Just days after the hacker attack on Yahoo in December 2014, the security company learned that Russian hackers had stolen the most valuable data: user names, email addresses, phone numbers, dates of birth, encrypted passwords, and secret questions and answers on them, that were related to hundreds of millions of user accounts, "the SEC said.

"Despite the fact that information about the data leak was transferred to Yahoo's top managers and legal officers, the company was not able to properly investigate circumstances of this case and adequately assess whether it is worth disclosing data about the attack to investors," the regulator said in a statement .

Let's remind, last January investigation of leak of the personal data of users Yahoo! has begun. Despite the cooperation of the company and the US special services, the cyber attack mechanism could not be determined. As a result, management of Yahoo! was dismissed, and the company was renamed Altaba. SEC believes that the company misled investors by hiding information about the major hacker attack, a victim of which Yahoo! became.

"The inability of Yahoo to create controls and procedures for assessing obligations in terms of disclosure of information about hacking attacks has led investors to remain unaware of the serious data leakage," said Jina Choi, director of the SEC regional office in San Francisco. "Public companies should have appropriate procedures for properly assessing hacker attacks and disclosing important information to investors."
Yahoo sold its profile Internet business Verizon in 2017, after which it changed its name to Altaba.


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