Remember that insane data breach at Yahoo a couple years ago? Three billion accounts were compromised over a three-year period, making this breach one of the largest in history. Worst of all, Yahoo itself made no effort to disclose any information about the breach to its users.
Meanwhile, personal information like usernames and passwords may have been obtained and exploited by hackers. Many people experienced identity theft and unnecessary costs to their small businesses or personal finances.
With so many people affected by this massive breach, a class-action lawsuit was filed against Yahoo and parent company Verizon. In a recent hearing, a financial settlement was agreed upon by both parties and is now facing a district judge for final approval.
Nearly everyone affected by the breach will be able to make a claim, but how much are victims really entitled to at the end of the day? I’ll show you what the numbers look like.
3 billion Yahoo accounts compromised
Just like what happens sometimes in politics, it was the cover-up that got Yahoo in trouble. The company officially claimed only 1 billion accounts were compromised — but only after three years had passed without victims being informed. After this, they continued to revise their story until the real number of victims skyrocketed to 3 billion: triple what Yahoo had initially said.
Since then, one of the biggest class action-lawsuits in history has raged against Yahoo. When its new parent company, Verizon, took over the flailing enterprise, it inherited Yahoo’s legal troubles as well. With larger resources and a stronger reputation to uphold, they’ve been active in negotiating a settlement with class action lawyers that hope to see justice served for victims of the hack.
How Yahoo will payout to victims of massive data breach
After much deliberation and a previously rejected settlement deal, both Yahoo and the plaintiffs have agreed on a $117.5 million settlement. As the numbers stand, this is the single largest common fund ever obtained in any data breach case with the potential to have one of the largest payouts as well.
The newly agreed upon settlement class would include all U.S. and Israeli residents who had Yahoo accounts between 2012-2016. That’s approximately 896 million accounts and 194 million individual users!
The $117.5 million total would pay for credit monitoring for all affected parties with no cap on claimants. The settlement would also cover attorney fees, administrative costs and miscellaneous out-of-pocket expenses. Most notably, Yahoo identified it would cover small business owner’s losses, subscription user fees and expenses related to lost time.
There aren’t full details yet as to specific collection amounts, as everyone’s expenses and losses will be different. The previous deal reached by Yahoo was rejected by the judge for not being generous enough for victims. This new agreement, however, looks to be satisfactory to both parties.
While we wait for the judge to make their decision, we’ll be keeping you informed on the latest updates in this historical case. If you were affected, this judgment may help you reclaim some of the time and money you lost.