U.S. SEC probing Yahoo over previously disclosed cyber breach -filing

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By Suzanne Barlyn

<span class="articleLocation”>The U.S. Securities and Exchange Commission is
investigating a previously disclosed data breach at Yahoo Inc
, the company said in a filing.

Yahoo said in a November 2016 quarterly filing that it was “cooperating with federal, state and foreign” agencies,
including the SEC, that were seeking information and documents
about a “security incident and related matters.”

The SEC is investigating whether two massive data breaches
at Yahoo should have been reported sooner to investors, the Wall
Street Journal reported on Sunday, citing people familiar with
the matter.

An SEC spokesman declined to comment. A Yahoo spokesman
directed Reuters to the company’s November filing.

Yahoo has faced pointed questions about exactly when it knew
about a 2014 cyber attack it announced in September that exposed
the email credentials of half a billion accounts.

In December, Yahoo said it had uncovered yet another massive
cyber attack, saying data from more than 1 billion user accounts
was compromised in August 2013.

The SEC issued requests for documents in December, as it
probes whether the technology company’s disclosures about the
cyber attacks complied with civil securities laws, the people
said, according to the Journal.

Securities industry rules require companies to disclose
cyber breaches to investors. Although the SEC has long-standing
guidance on when publicly traded companies should report hacking
incidents, companies that have experienced known breaches often
omit those details in regulatory filings, according to a 2012
Reuters investigation.(reut.rs/2dblx5S)

Democratic U.S. Senator Mark Warner asked the SEC in
September to investigate whether Yahoo and its senior executives
fulfilled obligations to inform investors and the public about
the 2014 hacking attack.

The disclosures from Yahoo about both breaches came after
the company agreed to sell its main business to Verizon
Communications Inc in July, triggering questions about
whether the deal would still be viable and, if so, at what
price.

Other agencies looking into the data breach include the
Federal Trade Commission, the U.S. Attorney’s Office in
Manhattan and “a number of State Attorneys General,” Yahoo said
in the November filing.



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