Biz! Formerly! Known! As! Yahoo! Settles! Data! Breach! Cases! To! The! Tune! Of! $47m!

Didja think we'd get rid of the exclaims just 'cos you're Altaba now?


The company formerly known as Yahoo! is close to settling cases related to the mammoth data security breach it covered up almost four years ago at a cost of around $47m.

In its latest SEC filing, Altaba, as Yahoo is now known, said various legal actions spawned by the 2014 attack were nearly resolved.

Yahoo! execs knew that Russian hackers had stolen the firm's entire database of hundreds of millions of usernames, email addresses, phone numbers, encrypted passwords and security questions just days after the break-in happened, in December 2014.

However, they waited two years to 'fess up, only doing so when Verizon was in the process of buying its operating business – prompting a whopping fine from the SEC and various lawsuits.

Altaba said the parties in the consumer class-action suit had reached an agreement in principle to settle all pending claims, subject to certain conditions, which includes court approval.

If a definitive agreement is reached, and the court approves this, the firm will be responsible for half the total costs and Verizon – which entered into a commitment when it acquired the firm's legacy internet business – for the other half.

The parties in the shareholder derivative litigation have negotiated a definitive deal, Altaba said, while a court has approved a settlement in its federal securities class-action case.

The firm said it would be forking out an additional $47m for litigation settlement expenses as a result of the developments in the three cases.

"These developments mark a significant milestone in cleaning up our contingent liabilities related to the Yahoo data breach," Altaba's chief exec Thomas McInerney said in a letter to shareholders.

The holding firm also confirmed it had completed the sale of its remaining Yahoo! Japan stake at $3.16 a share, with the sale of $4.3bn of stock, making it now mostly a holding company for its stake in Chinese giant Alibaba. It has nearly a 14.9 per cent holding in the firm.

Altaba has confirmed a $5.75bn share repurpose with the proceeds of this sale and the related sale of $2bn of Yahoo! Japan stock to SoftBank. ®


Other stories you might like

  • Chinese e-commerce giant Alibaba makes 9 datacenter energy patents available
    Part of a Low Carbon Patent Pledge with Meta, Microsoft, and others

    Chinese tech giant Alibaba is joining a coalition pledging to freely distribute energy efficient and green technologies, and has made nine patents available as part of the deal. 

    The patents Alibaba is giving to the Low Carbon Patent Pledge (LCPP) mostly involve parts of its own in-house "soaking server" liquid immersion cooling system developed in 2015 that Alibaba claims reduced its datacenter energy expenditure by 70 percent.

    Two of the nine patents were unrelated: one limits hard drive power consumption, and another was designed to improve hardware utilization rates. 

    Continue reading
  • US appeals court ruling could 'eliminate internet privacy'
    Tech terms of service dissolve Fourth Amendment rights, EFF warns

    The US Ninth Circuit Court of Appeals on Wednesday affirmed the 2019 conviction and sentencing of Carsten Igor Rosenow for sexually exploiting children in the Philippines – and, in the process, the court may have blown a huge hole in internet privacy law.

    The court appears to have given US government agents its blessing to copy anyone's internet account data without reasonable suspicion of wrongdoing – despite the Fourth Amendment's protection against unreasonable searches and seizures. UC Berkeley School of Law professor Orin Kerr noted the decision with dismay.

    "Holy crap: Although it was barely mentioned in the briefing, the CA9 just held in a single sentence, in a precedential opinion, that internet content preservation isn't a seizure," he wrote in a Twitter post. "And TOS [Terms of Service] eliminate all internet privacy."

    Continue reading
  • Alibaba Cloud opens first South Korean datacenter
    Better late than never – all its global and Chinese hyperscale rivals are already there

    Alibaba Cloud has opened its first datacenter in South Korea.

    As is nearly always the case when hyperscalers expand their physical footprints, the company has said nothing about where the facility is located, or its capacity. Sadly, the company is also silent on whether it has brought its flagship immersion cooling to South Korea. It is also unclear if all Alibaba Cloud products, or a mere subset, are offered in South Korea. We've asked the company to clarify matters.

    One product that Alibaba has definitely deployed in South Korea is its "China Gateway" – a service that allows users to operate resources on Alibaba Cloud inside China with Alibaba assisting with local compliance chores, while maintaining secure and dedicated links to cloudy resources outside the Middle Kingdom. The service even offers the chance to rent office space from WeWork inside China, and to arrange local logistics. Alibaba Cloud suggests the service is a fine way for web-based businesses to enter China.

    Continue reading
  • China: Our big tech companies are hiring, not shrinking
    Please dismiss any thoughts you had that increasing regulation might have hurt the economy

    China's Cyberspace Administration has published statistics to assert that the nation's big technology companies are growing and not laying off thousands of workers.

    A Friday post by the Administration (CAC) revealed that from July 2021 to mid-March 2021, a dozen of China's top tech companies increased their collective payrolls by 79,100 people. The post names Tencent, Alibaba, ByteDance, Meituan, Pinduoduo, Kuaishou, Baidu, JD.com, NetEase, Weibo, Bilibili and Ant Group, and says all but one increased overall headcount.

    The announcement then offers short summaries of interviews the CAC has conducted with some of the companies mentioned above. All tell tales of re-alignments to catch shifting markets and consumer behaviour.

    Continue reading

Biting the hand that feeds IT © 1998–2022