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Yahoo Will Pay $50M to Settle Class-Action Suit Over Massive Data Breach

By NexChange
Financial Services

Yahoo has agreed to pay $50 million to 200 million users in the United States and Israel as settlement for a class-action lawsuit over one of the largest consumer internet data breaches in history.

Yahoo is now owned by Verizon’s Oath unit and TechCrunch notes that the payment will be split 50-50 between Oath and Altaba, the holding company that owns what remains of Yahoo after the Verizon acquisition. Altaba has already agreed to pay an additional $47 million to settle three other legal cases against Yahoo.

Per TechCrunch:

In addition, the company will cover up to $35 million on lawyer fees related to the case and provide affected users in the U.S. with credit monitoring services for two years via AllClear, a package that would retail for around $350. There are also compensation options for small business and individuals to claim back costs for losses associated with the hacks. That could include identity theft, delayed tax refunds and any other issues related to data lost at the hands of the breaches. Finally, those who paid for premium Yahoo email services are eligible for a 25 percent refund.

The data breach – which affected an estimated three billion email accounts worldwide – proved to ultimately be the final straw that led to the ouster of former CEO Marissa Mayer in 2017. The former Google star was hired by Yahoo in 2012 to try and turnaround the struggling internet pioneer, but her five-year tenure was beset by splashy acquisitions that failed to jumpstart the company and a succession of data breaches.

Yahoo’s class-action settlement is subject to final approval from U.S. District Judge Lucy Koh of the Northern District of California. A hearing is scheduled for November 29.

Photo: Getty iStock

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