Yahoo is resisting intense pressure from the U.S. government to surrender all of its user information .

Yahoo regards the demand as unconstitutional and hasn't complies despite the government threatening a $250,000 a day fine for non-compliance.

The fight between the government and Yahoo came to light when a federal judge ordered the unsealing of material from the case.

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Yahoo said the government amended a new law to demand the release of user personal information from online services. This new law was set in motion despite a challenge from Yahoo in 2007.

"Our challenge, and a later appeal in the case, did not succeed," said Yahoo general counsel Ron Bell.

Former National Security Agency contractor Edward Snowden disclosed the new law last year.

New material in the case underscores "how we had to fight every step of the way to challenge the U.S. government's surveillance efforts," Bell added.

The company is hesitant to comply with the government's demands because they feel it's a strike against the American citizens' constitutional right to privacy.

Yahoo states they are committed to protecting user data and will continue to refute the demands or laws they feel are unjust.

"We consider this case to be an important win for transparency, and we hope these records help promote informed discussion about the relationship between privacy, due process, and intelligence gathering," Bell said.

At this point it is unclear if Yahoo has to pay the mandated US$250,000 daily fines, however. Yahoo said it will do everything in its power to keep user information safe.

More information on the case will be released at a later date.

TagsYahoo, U.S., United States Government, privacy lawsuit, NSA surveillance, US surveillance, Yahoo Ron Bell, Constitutional Rights