Published: Thu, November 10, 2016
Economy | By Melissa Porter

Yahoo warns Verizon might kill $4.8 billion deal

Yahoo warns Verizon might kill $4.8 billion deal

Stolen user information included names, email addresses and answers to security questions, but did not include payment card data or unscrambled passwords, according to Yahoo.

Yahoo is facing multiple class action lawsuits in the USA over the 2014 data breach that saw user information for at least 500 million accounts leaked.

The website said 23 cases seeking class action against the tech company have been levied against Yahoo.

It has also been claimed the hack could mean Yahoo will face nearly two dozen lawsuits, according to Business Insider. Yahoo doesn't believe it is now possible for the attackers to forge valid Yahoo Mail cookies, according to a source familiar with the matter.

Some within Yahoo knew of a massive data breach that compromised its network when it occurred in 2014, not in late September, when it was first disclosed.

In a regulatory filing to the US Securities and Exchange Commission in NY, the internet giant said that it had spent $1 million in relation to the breach in the past quarter.

In a new filing with the US Securities and Exchange Commission as part of the investigation, Yahoo allegedly admitted to knowing it had been breached by a "state" actor.

If Verizon finds the breach did indeed have a damaging effect, it could trigger a clause in the deal that would allow the company to back out, Silliman said. Yahoo also warned of the possibility in its filing.

The internet company is now negotiating a A$6.7 billion sale to United States telco Verizon.

"We are confident in Yahoo's value and we continue to work towards integration with Verizon", a Yahoo spokesperson told CNNMoney.

Yahoo has struggled under the leadership of Marissa Mayer. Scrutinizers of the earnings call, such as Fortune's Jeff John Roberts, have pointed out that a slight uptick in Yahoo Mail activity could be attributed to victims logging in to change their account passwords.

Law enforcement authorities on Monday began sharing certain information they indicated was provided by a hacker who claimed it was Yahoo user account data, the company said Wednesday in a regulatory filing. Yahoo did not reveal any other details about the cache, or whether it had any relation to the pending investigation. An independent board committee is investigating how many employees at Yahoo knew about the breach by the state-sponsored actor, and when they knew about this, the company said in the filing.

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