Verizon Communications may have leverage to renegotiate its $4.8 billion Yahoo acquisition under a rarely used “material adverse change” clause. The clause allows buyers to leave agreements if a development is reasonably expected to “have a material adverse effect” on the business, assets, properties, operations, or finances of an organization. In July 2016, Yahoo disclosed a data breach that compromised 500 million user accounts. The breach reportedly occurred two years ago, but was discovered after the two companies signed an agreement.”]
Source: https://www.darkreading.com/attacks-breaches/yahoo-breach-may-trigger-material-adverse-change-clause