Yahoo! Inc. was sued by a user on Friday after the internet giant revealed data breach that effected about 500 million accounts. A New York resident, Ronald Schwartz accused the company of gross negligence over the massive hacking.
The lawsuit was filed in a San Jose, California-based federal court just a day after Yahoo’s disclosure of the unprecedented break-in. Schwartz sued the company on behalf of all Yahoo users in the U.S., whose personal data was compromised.
The latest news could further increase pressure on CEO Marissa Mayer, who is trying hard to revive the fortunes of the flagging company. The breach is also anticipated to effect the deal with Verizon Communications, which decided to acquire Yahoo’s Internet business a couple of months ago for $4.8 billion.
Shares of Yahoo fell 3.06 percent on Friday following the news.
Yahoo on Thursday disclosed that user data including names, cell numbers, email addresses, date of births and encrypted passwords were compromised in 2014. In the lawsuit, Yahoo is blamed for taking about three times longer than usually organisations need to get to the bottom of the breach. The complaints says that the company showed ‘’ reckless disregard for the security of its users’ personal information that it promised to protect.”
On Friday, about 8 million users in Britain were urged to change their account passwords after the information commissioner affirmed they were affected by the breach. The commissioner could impose fines of as much as £500,000 against Yahoo for not protecting its users’ information.
YHOO is the latest company hit by a cyber attack. Earlier this year, Myspace discovered up to 427 million of its user’s data up for sale on the dark web. Similarly, 117 million user accounts on LinkedIn were hacked in 2011.