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SEC Accuses Education Company of Hiding Cyber Breach

iStock-655346108 Hacker Cyber Security The Securities and Exchange Commission

"As the order finds, Pearson opted not to disclose this breach to investors until it was contacted by the media, and even then Pearson understated the nature and scope of the incident, and overstated the company's data protections," said Kristina Littman, Chief of the SEC Enforcement Division's Cyber Unit. "As public companies face the growing threat of cyber intrusions, they must provide accurate information to investors about material cyber incidents."

Without admitting or denying the SEC's findings, Pearson agreed to cease and desist from committing violations of these provisions and to pay a $1 million civil penalty.