U.S. Senator Requests SEC To Investigate Yahoo On Security Breach

(RTTNews) - Mark Warner. U.S. Senator, has sent a letter to the SEC requesting to investigate whether Yahoo and its senior executives fulfilled their obligations to keep investors and the public informed about the nature of the security breach that has affected more than 500 million accounts. Under federal law, public companies are required to disclose material events to shareholders within four business days.

"Last week, it was reported that Yahoo suffered a major breach in 2014. Press reports indicate Yahoo's CEO, Marissa Mayer, knew of the breach as early as July of this year. The company failed to file a Form 8-K disclosing the breach to the public. Furthermore, Yahoo has been engaged in an effort to sell its Internet business, including the unit affected by the breach, to Verizon since at least July 25, 2016, yet Yahoo reportedly did not inform Verizon of the breach until September 20, 2016."

Senator Warner currently is working on bipartisan legislation to create a comprehensive, nationwide and uniform data breach standard requiring timely consumer notification for breaches of financial data and other sensitive information.