SEC Reportedly Investigating Yahoo Data Breaches

sec-probes-yahoo-data-breaches

The Securities and Exchange Commission is reportedly investigating whether Yahoo should have notified investors sooner about the two massive data breaches that occurred at the company.

Last month, the Federal Bureau of Investigation said it had begun an investigation into a 2013 data breach that involved more than 1 billion users’ accounts. That followed Yahoo’s disclosure that a 2014 intrusion involved about 500 million accounts.

The SEC’s investigation looks into whether Yahoo disclosed information about the data breaches in timely enough fashion, The Wall Street Journal reported Monday. SEC rules require companies to disclose data breaches and cyberattacks as soon as it is determined the incidents could have an effect on investors.

Representatives for the SEC, Yahoo and Verizon, which is in the process of buying Yahoo, declined comment on the report.

Yahoo (YHOO) shares were up 0.2% Monday to $41.88. Shares have risen 9.6% over the last six months. Verizon shares were off 0.4%.

As part of its investigation, the SEC last month requested documents from Yahoo, the Journal said, citing persons familiar with the situation. The agency has been seeking a model case for cybersecurity rules it issued in 2011, legal experts told the Journal.

In a November 2016 SEC filing, Yahoo noted that it was cooperating with the SEC, Federal Trade Commission and other federal, state, and foreign governmental officials and agencies including “a number of State Attorneys General, and the U.S. Attorney’s office for the Southern District of New York.”

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SOURCE: USA Today, Mike Snider