Updated from 5:42 p.m. EDT
NEW YORK (TheStreet) -- Shares of Yahoo! (YHOO) were lower in after-hours trading on Friday as a user is suing the company for gross negligence after Yahoo confirmed yesterday that more than 500 million accounts on the digital information site were hacked in 2014.
The complaint was filed Friday in federal court in San Jose, CA and claims that due to a lack of security protocols, Yahoo users' personal information "is now in the hands of criminals and/or enemies of the U.S.," according to Bloomberg.
The case was filed by a New York resident and seeks class-action status.
Yahoo learned of the breach after investigating claims in July that 280 million user account credentials had been put up for sale on the black market.
The company said that a "state-sponsored actor" stole users' names, telephone numbers and other personal information.
Additionally, Yahoo executives in fall 2014 detected hackers in their system believed to be from Russia and looking for information from 30 to 40 specific users, the Wall Street Journal reports, citing sources.
At the time, Yahoo executives determined the attack was from Russia because it was launched from computers located in the country. The targets were people who did business in Russia, sources said, according to the Journal.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
TheStreet Ratings team rates Yahoo as a Hold with a ratings score of C. The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, it also finds weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share.
You can view the full analysis from the report here: YHOO