Yahoo has been sued by a user for gross negligence and delay in uncovering the breach a day after it disclosed that 500 million user accounts were hacked in 2014 and confidential data compromised, reports Reuters. New Yorker Ronald Schwartz has filed a lawsuit in California against the company, seeking class-action status and unspecified damages, on behalf of all affected US users.

In his complaint, Schwartz blames Yahoo for not taking adequate security measures despite earlier incidents of breaches and displaying "reckless disregard for the security of its users' personal information that it promised to protect." He alleged the company took around three times longer than required to uncover the hack.

The latest Yahoo breach, says Reuters, could spell trouble for CEO Marissa Mayer as she prepares for the $4.8 billion Verizon takeover.

Read full report here.