Yahoo sued over 2014 hacking after 500 million users affected

CALIFORNIA, U.S. - After facing the largest breach ever in history, that left over 500 million accounts affected - Yahoo has now been slapped with a class action lawsuit.

Filed in Sunnyvale, by Yahoo user and New Yorker Ronald Schwartz on behalf of all U.S. Yahoo users, the lawsuit accuses the company of “gross negligence” over the data breach. 

The tech company on its part has called the breach a “state-sponsored” attack.  

The claimants, however, have argued that it takes an average 191 days for a hack to be identified and 58 days to contain a breach after it’s been discovered, citing a research. 

The lawsuit reportedly contends that information from 500 million accounts had been compromised in the two years it took Yahoo to learn about the breach and called this unacceptable.

Although Yahoo reported that users’ financial details remained safe, FBI has launched a full investigation into the breach.

Many within the industry have speculated that Russia was behind those attacks.

Meanwhile, the company is facing another lawsuit in the U.S. District Court in San Diego where the claimant has alleged that the hack leaked personal information and caused an "intrusion into personal financial matters." 

In the midst of this storm, the tech giant’s reputation lies at stake, as does it ongoing process of acquisition by Verizon Communications. 

The company’s spokesperson, Suzanne Philion said the company does not comment on ongoing litigation. 

In July this year, after intensified talks, Verizon had agreed to buy Yahoo's core properties for $4.83 billion, and it remains to be seen if the massive security breach will impact the sale.