On January 24th, Yahoo became the latest company to have a securities class action lawsuit filed against it due to ramifications of a data breach. The lawsuit was filed against Yahoo and a number of its officers on behalf of a class consisting of persons or entities who purchased or acquired Yahoo securities between November 12, 2013 and December 14, 2016. The Complaint alleges the defendants failed to encrypt personal data leaving user information susceptible to theft which caused a drop in user engagements on Yahoo’s website and a drop in Yahoo’s share price.
RCM&D’s Management Liability team will be keeping a close eye on this case. If you have any questions or would like more information about protecting your company from a data breach please contact me at firstname.lastname@example.org or 484.581.2805.