There are a couple other stories if you search Google News, but not a ton of info.
Why is this bad ? My theory is that it could cause audits from other regulated entities that buy leads from Lending Tree, and perhaps a temporary or longer term suspension of their purchasing. This is especially difficult for LT since they purchase advertising forwards to get bulk pricing and depend on being able to sell mortgage leads. The small guys have largely dried up since last summer and even the bigs have laid off tens of thousands of LOs, so demand is already weak. This could further jeopardize their buy side market given that regulated entities will want to know how could a breach like this occur if they had proper segregation of duties -- it is a standard OTS audit requirement.
Just my opinion, I think LT is going to drag IACI down down down. Sure they have other divisions, but the way I read it they are largely susceptible to consumer confidence and a recession, so I don't expect any upside surprise from them to offset any problems. If their cash position weakens, they are going to look pretty disorganized and possible there won't be enough of a nucleus to get good valuations for a breakup. Plus, is now really a good time to increase shareholder value by breaking a company up into 5 units ?