06 April 2021
Yahoo users which were affected by the biggest internet hacks in history will now receive one of the largest class action settlements after Yahoo. The company has agreed to pay $50 million to victims who were affected by the security breach. The breach had reportedly affected up to 200 million U.S. consumers, and over three billion email accounts worldwide.
Yahoo, which is now part of Verizon’s Oath business has proposed to pay approximately $50 million in compensation to an estimated 200 million users in Israel and the US. The company will also cover up to $35 million on lawyer fees which are related to the case. The company will also provide affected users in the U.S. with credit monitoring services for two years. There are also different compensation options for small business and individuals who had claimed losses associated with the internet breach. These include businesses affected by identity theft, delayed tax refunds, etc. Users who had available premium Yahoo email services will be eligible for a 25% refund.
The proposed deal is subject to final approval from Northern District of California’s U.S. District Judge Lucy Koh at a hearing slated for November 29, 2018.
Verizon which now owns Yahoo will pay for one half of the settlement cost, while the other half will be paid by Altaba Inc., that holds Yahoo’s investments in Asian companies. Altaba has already paid a $35 million fine which was imposed by the Securities and Exchange Commission for Yahoo’s delay in disclosing the breach to its investors and users.