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Yahoo’s Successor Settles First-Ever Case Involving SEC Charges for Failing to Disclose a Cybersecurity Incident

By Matthew C. Solomon, Pamela L. Marcogliese, Rahul Mukhi & Kal Blassberger
April 27, 2018
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On April 24, 2018, Altaba, formerly known as Yahoo, entered into a settlement with the Securities and Exchange Commission (the “SEC”), pursuant to which Altaba agreed to pay $35 million to resolve allegations that Yahoo violated federal securities laws in connection with the disclosure of the 2014 data breach of its user database.  The case represents the first time a public company has been charged by the SEC for failing to adequately disclose a cyber breach, an area that is expected to face continued heightened scrutiny as enforcement authorities and the public are increasingly focused on the actions taken by companies in response to such incidents.  Altaba’s settlement with the SEC, coming on the heels of its agreement to pay $80 million to civil class action plaintiffs alleging similar disclosure violations, underscores the increasing potential legal exposure for companies based on failing to properly disclose cybersecurity risks and incidents.

Please click here to read the full alert memorandum.

Photo of Matthew C. Solomon Matthew C. Solomon

Matthew C. Solomon has significant experience in complex and high-stakes civil and criminal matters, having served for 15 years with the U.S. Department of Justice and the U.S. Securities and Exchange Commission—including most recently as the SEC’s Chief Litigation Counsel.

Read more about Matthew C. Solomon
Photo of Pamela L. Marcogliese Pamela L. Marcogliese

Pamela L. Marcogliese’s practice focuses on corporate and financial transactions, particularly capital markets matters, along with work on a range of corporate governance matters.

Read more about Pamela L. Marcogliese
Photo of Rahul Mukhi Rahul Mukhi

Rahul Mukhi’s practice focuses on criminal, securities, and other enforcement and regulatory matters as well as on complex commercial litigation.

Read more about Rahul Mukhi
  • Posted in:
    Corporate & Commercial, Criminal
  • Blog:
    Cleary Enforcement Watch
  • Organization:
    Cleary Gottlieb Steen & Hamilton LLP
  • Article: View Original Source

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