Huazhu Says Suspect in Data Breach Arrested; Stock Continues to Slide

As the stock of Huazhu continues its slide since the data breach, the hotel operator released an update on the investigation Monday.

Anna Vodopyanova
    Sep 17, 2018 10:37 AM  PT
Huazhu Says Suspect in Data Breach Arrested; Stock Continues to Slide
author: Anna Vodopyanova   

Huazhu Group Ltd. (Nasdaq: HTHT) announced today that a suspect related to the information leak involving nearly 500 million of the company's client data has been arrested and that the investigation continues.

At the end of August, the Chinese hotel company suffered from a cybercrime involving theft of millions of customer-related information. A post on an anonymous Dark Web forum offered to sell information of clients who stayed at Huazhu hotels for 8 bitcoins, an equivalent to $54,400.

Since the news of a data breach, the company's shares slid from $35.53 per share on Aug. 27 to today's intraday price of $27.61, down 22 percent overall.

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The stock of Huazhu was trading at $27.61 per ADS on Monday afternoon, down 36 cents.

Since the incident with the data breach, shares in the company lost 22 percent.

(Source: Thomson Reuters Eikon)

In a statement today, Huazhu said the user who posted the ad on Dark Web has been arrested and the sale was not successful.

As the investigation is ongoing, the hotel company said, it cannot disclose more information on the matter.

"For details of issues of public concern, including whether the allegations made on the Dark Web forum by the suspects are authentic, and whether there has been an information leak, the Company is required not to make a public announcement until the completion of the police investigation," Huazhu said.

The company also asked investors and the public "not to believe in rumors or spread unconfirmed information."


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