Schwartz Vs. Yahoo Inc.: Case Study

1065 Words5 Pages
On September 22, 2016, Yahoo! Inc. announced that “a copy of certain user account information was stolen from [their] network in late 2014 by what [they] believe is a state-sponsored actor.” (YAHOO) The company revealed that some of the stolen account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords, and encrypted or unencrypted security questions and answers. According to their ongoing investigation, stolen information did not include user’s payment card data and bank account information. By September 23, Ronald Schwartz sued Yahoo! Inc. on behalf of all Yahoo users in the United States whose account information was stolen. Plaintiff Ronald Schwartz is a New York resident, who filed…show more content…
Yahoo Inc., U.S. District Court, Northern District of California, No. 16-05456, I will refer to Topic E Torts: Negligence. A tort is a civil wrong that occurs when a party breaches a legal duty owed to another party and as a result the non-breaching party seeks remedy in the form of damages. Negligence is an unintentional tort that occurs when a party fails to provide the proper standard of care that a reasonable person would have provided in a similar situation. A higher degree of negligence is gross negligence. Gross negligence occurs when a party’s action falls substantially below “reasonable care” and such action can be considered as intentional rather than…show more content…
Without a doubt, Yahoo’s breach of duty led to numerous harms as the ones stated above, that must be paid out of the users’ own pockets. Plaintiff Schwartz could claim that as users are now at a high risk of identity theft, they must pay for special security computer programs or additional services to protect themselves. Moreover, Ponemon Institue stated in its annual report that “the costs to remediate a data breach is $221 per stolen record” (New York Times). This additional charge could be a serious harm to Yahoo as it tops the $4.8 billion deal with Verizon Communications Inc. Indubitably, plaintiff Ronald Schwartz has enough arguments to fulfil the requirements to file for a gross negligence

More about Schwartz Vs. Yahoo Inc.: Case Study

Get Access