Uber admits covering up 2016 hacking, avoids prosecution in U.S. settlement
By Jonathan Stempel
(Reuters) -Uber Applied sciences Inc 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 legal fees.
In getting into a non-prosecution settlement, Uber admitted that its personnel didn’t report the November 2016 hacking to the U.S. Federal Commerce Fee, despite the fact that the company had been investigating the ride-sharing firm’s knowledge safety.
U.S. Lawyer Stephanie Hinds in San Francisco stated Uber waited a couple of 12 months to report the breach, after putting in new government management who “established a robust tone from the highest” relating to ethics and compliance.
Hinds stated 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 position in concealing the hacking.
Uber didn’t instantly reply to requests for remark.
Sullivan was initially indicted in September 2020. Prosecutors stated Sullivan organized to pay the hackers $100,000 in bitcoin and have them signal nondisclosure agreements that falsely said they’d not stolen knowledge.
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.
(Reporting by Jonathan Stempel in New York; Enhancing by Leslie Adler)
