thank you for taking time in filing the bug to make ubuntu better.
i guess your seehorse (key and password) lost during the updates so that why it
was saying the authentication failed.
have you checked that your password and ids are saved there in the seahorse ?
** Changed in: empathy (Ubuntu)
Status: Confirmed => Incomplete
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https://bugs.launchpad.net/bugs/1005105
Title:
Empathy fails authorization after restart in ubuntu 12.04
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