Verizon to pay $8.8B for failing to stop cyberattack
Verizon will pay $1.8 billion to settle criminal charges stemming from its failure to prevent a major cyberattack on its network, the U.S. Justice Department announced Monday.
The Justice Department’s announcement follows a court ruling that forced Verizon to take a $1 billion charge in 2015 after the data breach.
The government said Verizon failed to protect the networks from the attack and that it was not adequately prepared to deal with it.
The Department of Justice said in a statement that Verizon will provide $1,874 million in penalties, and will pay a $2 billion fine.
The DOJ announced the settlement after a six-month investigation by the agency’s Civil Division and the Securities and Exchange Commission.
Verizon was accused of failing to prevent the breach and failing to adequately inform investors of its findings.
Verizon said in its statement that it will continue to vigorously defend itself against charges of criminal negligence and civil rights violations, and said it will cooperate fully with the investigation.
The settlement will include $3.2 billion in cash, a $4 billion commitment to help pay down the debt and pay a penalty of up to $6.3 billion.
It also requires Verizon to “promote cybersecurity training and education” for employees and employees’ families.
Verify, a division of the Electronic Frontier Foundation, filed suit against Verizon in 2016.
It said the settlement is necessary to ensure that the public has access to accurate information about the criminal charges, the criminal proceedings, and the settlement.
The government’s announcement came a day after Verizon agreed to pay a record $9 billion to resolve a fraud case stemming from the 2014 hack of the e-commerce giant.