Yahoo proposes $117.5 million settlement for data breach

Lloyd Doyle
April 11, 2019

Almost 200 million people who had sensitive information snatched from their Yahoo accounts will receive two years of free credit-monitoring services and other potential restitution in a legal settlement valued at $117.5 million.

The proposed settlement was publicly announced on Tuesday, but it still needs to be approved by US District Judge Lucy Koh, based in San Jose, California, Reuters said.

However, Koh found that the settlement proposal did not include the size of the settlement fund, the costs of credit monitoring, and that how much victims could expect to recover from the breach. The 2013 breach affected every single customer account that existed at the time, which totaled 3 billion. It is not a solicitation to make any exchange in commodities, securities or other financial instruments.

Yahoo, which is now owned by Verizon, has already been fined £250,000 by the UK's Information Commissioner's Office (ICO) on behalf of users in the United Kingdom.

Lawyers representing the Yahoo accountholders estimate about 194 million people in USA and Israel will be eligible to make claims, according to court documents.

When Verizon acquired Yahoo for $4.48 billion in 2016, in the following year, Yahoo and AOL also formed a new company under Verizon named Oath.

This settlement would also see Verizon, Yahoo's parent company, up its spending on security to $306 million between 2019 and 2022.

Yahoo agreed in July 2016 to sell its internet business to Verizon for $4.83 billion.

"The settlement demonstrates our strong commitment to security", Verizon said in a statement.

USA prosecutors charged four men, including two Russian intelligence agents and two hackers, for one of the breaches in 2017.

"On average that is 25 dollars per compromised account, embarrassingly modest compensation for breach of your privacy and stolen personal data", said Ilia Kolochenko, CEO of the Web security firm, High-Tech Bridge. The company faced a class action lawsuit. "We have to take cybersecurity seriously or pay a considerable price".

Other reports by Iphone Fresh

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