Yahoo Japan subsidiary loses 5,698 companies' data

Rental server provider Firstserver unable to rebuild system and retrieve businesses' information after system failure last week, and plans to compensate affected customers instead.

Server rental company, Firstserver, has lost data belonging to 5,698 businesses following a system failure last week. The company, a Yahoo Japan subsidiary, adds it would be compensating affected customers after it could not retrieve the lost information.

According to a statement released on Tuesday, Firstserver have determined that the data affected by a system failure on Jun. 20 cannot be retrieved. The information included those posted up on the companies' Web sites hosted on the service provider's servers. Furthermore, since it is unable to rebuild the system, it plans to compensate the impacted businesses for damages incurred.

Companies affected include the Newspaper Association of Japan, Tokyo Table Tennis Federation and Nagano Electric Railway, according to a Japanese tech blog ICT Headline

Last week's system failure occured at 5 p.m., when the company tried to upgrade its server system's security, but faced problems with its computer programming and operating procedure, the Osaka-based server rental company said.

Yahoo Japan had acquired 57.7 percent of Firstserver in November 2004 to strengthen its position in the server rental and domain business.