Yahoo user sues company for negligence

Jeff Allan says his privacy was violated after a hacker posted his Yahoo login information online

A Yahoo! Inc. user has sued the Internet giant claiming the company was negligent after it disclosed that a hacker stole about 450,000 user names and passwords from one of its sites.

In his July 31 complaint in a California federal court, Jeff Allan said his login information was posted online after someone hacked into Yahoo’s site. He claims the company failed to protect his personal information and asks the court to make Yahoo compensate him and other Yahoo users for account fraud and the measures they have had to take themselves to protect their accounts.

According to Yahoo, hackers broke into a file on July 11 and stole account information on Yahoo users as well as Gmail, Hotmail and AOL users. Security consulting company TrustedSec pointed the finger at a hacker group called D33Ds, which posted account details of 450,000 user accounts on an unencrypted Yahoo Voices file.

Read more about this case on BloombergBusinessweek.

For more InsideCounsel coverage of Yahoo, see:

Longtime Yahoo GC resigns

Facebook fires back, accuses Yahoo of patent infringement

Yahoo sues Facebook over patents, as promised

Yahoo demands licensing fees from Facebook, threatens lawsuit

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