Yahoo has agreed to pay $50 million to the approximately 200 million customers whose personal information was compromised in what reportedly was the largest data breach in history. The settlement also provides for credit monitoring services for two years for class members.
The settlement, which must be approved by U.S. District Court Judge Lucy Koh, would resolve a class action stemming from hacks that occurred in 2013 and 2014 but were not disclosed until 2016. The settlement covers about a billion accounts held by some 200 million people. Yahoo, which was acquired by Verizon after the data breach announced earlier this month that nearly all of its 3 billion accounts were affected by the breach.
The hackers, some of whom were linked to Russia by U.S. investigators, used a phishing scheme in which they imitated the login interface of Yahoo’s email platform to trick people into divulging personal information. Customers’ names, addresses, phone numbers, dates of births and other personal information were divulged.
The Associated Press reported users could receive about $375 each if they provide the court with documentation of the time they spent dealing with fallout from the hack. Those without documentation will receive $125, the AP said. Credit monitoring service can run up to $360 for two years and will be provided by Yahoo free of charge.
This blog is intended to provide information to the general public and to practitioners about developments that may impact Oregon class actions.