Yahoo Sued After Disclosure User Names, Passwords Stolen

3 August 2012

Yahoo! Inc., the operator of the biggest U.S. Web portal, was sued for negligence over its disclosure that as many as 450,000 user names and passwords were stolen from one of its sites.

A Yahoo user who said his login credentials were posted online after a hacker infiltrated a company database on July 11 filed a complaint July 31 in federal court in San Jose, California.

Jeff Allan of New Hampshire said in his complaint that Yahoo failed to adequately safeguard his personal information and seeks an order requiring the company to compensate him and other users for account fraud and for measures they have had to take to protect accounts put at risk by the Yahoo breach.