On April 12, 2016, the Badlock vulnerability, formally identified as CVE-2016-2118, was disclosed in the Security Account Manager (SAM) and Local Security Authority (Domain Policy) (LSAD) remote protocols supported by Windows and Samba servers. The services were layered on DCE 1.1 Remote Procedure Call (DCE/RPC), and their implementations permitted an attacker positioned between communicating systems to conduct a man-in-the-middle attack. That exposure could undermine the trust expected from server-based account and domain-policy operations.
The vulnerability was discovered during Samba development, making the open-source server project central to identifying the defect. The supplied source distinguishes Badlock from the SMB protocol itself: the naming SMB protocol was not affected, while the underlying SAM and LSAD RPC services were. The source provides no reported financial-loss figure, named executive responsibility, whistleblower account, court case, or regulatory penalty, so no broader legal aftermath is established here. Its lasting significance is the disclosure of a cross-platform authentication and policy-management weakness affecting both Microsoft and Samba environments.