I've done two major corporate transactions, and contemplated a number of others that made it past letter of intent and into due diligence. In this mode, the lawyers emhphasize over and over that you want to disclose every liability, no matter how small, up front, before the deal is signed. Any liability that is discovered later will cost you. If the liability is big enough, you could have to return all the money, and your liability isn't even limited to that. I had one bizarre case where I was being sued by my own lawyer, and advised by another to settle or risk losing everything.
When you're working at the level of CEO of a public company, as the Yahoo CEO is, by definition, at all times, you want to preserve your right to litigate. And given Yahoo's litigious nature under this CEO, you gotta figure that'll bring out the litigators from all over.
While I've only had an occasional glimpse of the lawyer hell that corporate CEOs live in, it's hard to imagine going into that kind of constant battle with this kind of exposure. How can you sue someone for breach of contract when you lied to get your job. It's a pretty awkward situation. Never mind what it says to people who apply for jobs at Yahoo. Don't worry about lying on your resume. We don't take that stuff seriously here at Yahoo.