July 22 (Reuters) – Uber Applied sciences Inc (UBER.N) on Friday accepted duty for overlaying up a 2016 knowledge breach that affected 57 million passengers and drivers, as a part of a settlement with U.S. prosecutors to keep away from prison prices.
In coming into a non-prosecution settlement, Uber admitted that its personnel did not report the November 2016 hacking to the U.S. Federal Commerce Fee, although the company had been investigating the ride-sharing firm’s knowledge safety.
U.S. Legal professional Stephanie Hinds in San Francisco mentioned Uber waited a couple of 12 months to report the breach, after putting in new govt management who “established a powerful tone from the highest” relating to ethics and compliance.
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Hinds mentioned the choice to not criminally cost Uber mirrored new administration’s immediate investigation and disclosures, and Uber’s 2018 settlement with the FTC to keep up a complete privateness program for 20 years.
The San Francisco-based firm can be cooperating with the prosecution of a former safety chief, Joseph Sullivan, over his alleged function in concealing the hacking.
Uber didn’t instantly reply to requests for remark.
Sullivan was initially indicted in September 2020. Prosecutors mentioned Sullivan organized to pay the hackers $100,000 in bitcoin and have them signal nondisclosure agreements that falsely said that they had not stolen knowledge. learn extra
Uber had a bounty program designed to reward safety researchers who report flaws, however to not cowl up knowledge thefts.
In September 2018, Uber paid $148 million to settle claims by all 50 U.S. states and Washington, D.C., that it was too gradual to reveal the hacking.
Uber shares closed down 93 cents at $23.30 on Friday. The non-prosecution settlement was disclosed after U.S. markets closed.
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Reporting by Jonathan Stempel in New York; Enhancing by Leslie Adler
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