• Yahoo is sued for gross negligence over a massive hacking in 2014
  • Filed by Ronald Schwartz, a New York resident, the lawsuit came one day after Yahoo disclosed the hacking in which information was stolen from at least 500 million accounts
  • Schwartz sued on behalf of all Yahoo users in the United States whose personal information were compromised

A lawsuit was filed in the federal court in San Jose, California against Yahoo Inc (YHOO.O) by a user who accused the company of gross negligence over a massive 2014 hacking.

Filed by Ronald Schwartz, a New York resident, the lawsuit came one day after Yahoo disclosed the hacking in which information was stolen from at least 500 million accounts, an article written by Jonathan Stempel on Reuters stated.

Schwartz sued on behalf of all Yahoo users in the United States whose personal information were compromised. According to the complainant, the lawsuit seeks class-action status and unspecified damages.

In addition to this, the complainant noted that Yahoo demonstrated “reckless disregard for the security of its users’ personal information that it promised to protect.”

Also, the lawsuit suggested that the breach might have been prevented had Yahoo, having been targeted by hackers in the past, lived up to its promise of taking user privacy “seriously” and bulked up its security measures.

As such, the complainant faulted Yahoo for taking so much time to uncover the breach.

Earlier, Yahoo said the hacking which was believed to be a “state-sponsored act” is unprecedented in size. The company said user information including names, email addresses, phone numbers, birth dates and encrypted passwords had been compromised in late 2014.

However, a Yahoo spokeswoman said the company does not discuss pending litigation as she further stressed the attack could complicate Chief Executive Marissa Mayer’s effort to shore up the website’s flagging fortunes; two months after she agreed to a $4.8 billion sale of Yahoo’s Internet business to Verizon Communications Inc .