Yahoo is facing a $10m lawsuit from a victim of child abuse who claims pictures of their abuse were distributed by the firm.
Adam Voyles, partner at Heard, Robins, Cloud & Lubel, told the Reg he represents a child who was molested and pictures of that molestation were distributed to the Candyman website, which was hosted by Yahoo.
Voyles said: "They owed a duty to the population as a whole to not distribute illegal material, we're not talking inappropriate here but illegal. It is like distributing cocaine or heroin."
Yahoo is accused of distributing child pornography in breach of federal law, public disclosure of private facts and negligence.
The FBI investigated the Candyman group in 2002. As a result almost 1,400 individuals were identified and 86 people later arrested.
Yahoo did not reply to our request for comment.®