First Class Action Against Yahoo! for Largest Data Breach in History Filed by Labaton Sucharow and Robbins Geller Rudman & Dowd 

Nearly 500 million users affected by breach that went undetected for two years

NEW YORK (September 23, 2016) — Labaton Sucharow LLP and Robbins Geller Rudman & Dowd LLP jointly filed a class action today against Yahoo! Inc. (Yahoo) concerning an unprecedented breach of the tech giant’s security affecting approximately 500 million users.

In a statement released yesterday, September 22, 2016, Yahoo noted that a “recent investigation” confirmed that sensitive personal account information associated with at least 500 million user accounts “was stolen from the company’s network in late 2014 by what it believes is a state-sponsored attack.” The stolen information included users’ names, email addresses, telephone numbers, dates of birth, hashed passwords, and in some cases, encrypted or unencrypted security questions and answers. Reports indicate that this data breach was the largest from a single site in history. 

The plaintiffs allege that Yahoo’s actions constituted a reckless disregard for the safety and security of Yahoo users’ personal information and assert that Yahoo should be responsible for damages caused to its users. Unlike many other recent data breaches, Yahoo has not offered users any assistance with identity theft protection, even though its users are now at a much higher risk of having their identities stolen and must pay out of their own pockets to protect themselves.

In a joint statement, attorneys from Labaton Sucharow and Robbins Geller said, “Yahoo’s failure to safeguard its users’ very personal, sensitive information, in direct violation of its promises, is utterly unacceptable in this day and age. The fact that a breach of this magnitude went undetected at a tech giant like Yahoo for two years is astounding.”

The case, Schwartz v. Yahoo Inc., 16-cv-05456 (N.D. Cal.), was filed in the United States District Court for the Northern District of California.