Failure to Disclose as Securities Fraud
Recently the Securities and Exchange Commission (SEC) reached a $35 million settlement with Altaba Inc. for alleged securities fraud. For those of you that don’t know, Altaba is the old Yahoo!. Previously, the SEC charged the company with failure to investors of an enormous security breach back in 2014. Hundreds of millions of users had their personal information stolen by hackers Management, according to the SEC,knew about the massive breach but failed to it in SEC quarterly filings. In the quarterly reports, managers disclosed only a chance of future hacks, but not the fact that a massive hack had already occured.
Cyber-security Disclosures and Regulations
SEC regulations state the companies are to avoid generic disclosures. SEC rules require issuers to give specific details relating to financial, legal, or reputational consequences. Greater transparency makes for fair markets and According to regulations in place by SEC, the failure to disclosure the 2014 hack violates both the Securities Act of 1933 and the Exchange Act of 1934.
A whistleblower first informed the SEC of Yahoo’s violations. The California whistleblower and securities fraud attorneys at Evans Law Firm, Inc. represent whistleblowers and individuals injured by securities fraud in San Francisco and throughout California. If you suspect securities fraud and have hard evidence of the fraud, call us today at (415)441-8669 and our attorneys can represent you.
If you or a loved one has suffered economic loss as a result of securities fraud, contact California securities and financial elder abuse attorney Ingrid Evans and the other Evans Law Firm financial elder abuse and securities attorneys at (415) 441-8669, or by email at <a href=”mailto:firstname.lastname@example.org”>email@example.com</a>. Our attorneys have experience with complex financial contracts and large insurance companies. We can help guide your case through a FINRA arbitration, jury trial or toward an equitable settlement. We handle cases involving physical and financial elder abuse, qui tam and whistleblower law, nursing home abuse, whole life insurance and universal life insurance, and indexed, variable, and fixed annuities.
 Evans Law Firm, Inc. was not involved in this case in any way.