Yahoo to pay $117.5 million in latest data breach settlement

Date:

Trending

Nearly 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 USD 117.5 million.

- Advertisement -

The deal revises an earlier agreement struck last October, only to be rejected by US District Court Judge Lucy Koh in San Jose, California. The value of that settlement had been pegged at USD 50 million, but Koh questioned the calculations.

A more detailed breakdown used in the revised settlement drove up the estimated cost. The money will be paid by Yahoo’s current owner, Verizon, and Altaba, a holdover from Yahoo’s past that still owns a stake in Chinese internet company Alibaba Group worth billions of dollars.

- Advertisement -

If approved, the settlement will become part of the financial fallout from digital burglaries that stole personal information from about 3 billion Yahoo accounts in 2013 and 2014 — believed to be the biggest data breach ever.

And now the USD 117.5 million settlement could become largest amount ever doled out for a data breach, a recurring problem in an increasingly digitally driven world. It eclipses a USD 115 million settlement that Koh approved last year to cover 79 million people who had personal information stolen in a 2015 breach at health insurer Anthem Inc.

Yahoo didn’t begin to disclose the extent of its security breakdown until 2016 amid an FBI investigation that eventually linked some of the hacking to Russia . The revelations brought a mortifying end to the reign of Yahoo CEO Marissa Mayer, eventually prompting the company to reduce its selling price to Verizon by USD 350 million.

Verizon has since written off much of the nearly USD 4.5 billion price for the Yahoo acquisition in sign of the eroding value of that business.

Lawyers representing the Yahoo account holders estimate about 194 million people in US and Israel will be eligible to make claims, according to court documents. Those people collectively may have had about 896 million of the Yahoo accounts hit in the break-ins.

The biggest piece of the revised Yahoo settlement disclosed in documents filed Tuesday consists of the free credit-monitoring services that will be offered to everyone covered by the deal to protect them from identity theft and other potential problems. The service from AllClear usually costs USD 14.95 per month, or USD 359 for two years. People who already have a credit-monitoring service will be eligible for cash payments instead.

Yahoo account holders who paid anywhere for USD 20 to USD 50 annually for premium email accounts will be eligible for refunds of up to 25%. People who had to spend time protecting their identities or dealing with other issues caused by the breach can be seek to be paid at a rate of USD 25 per hour for up to 15 hours.

The settlement will also pay up to USD 32.5 million in fees and other expenses to the lawyers representing Yahoo account holders, down from the USD 37.5 million sought in the earlier agreement — another sticking point for Koh.

A hearing on the revised settlement is scheduled for June 27.

THE SNAPSHOTS

Sign up to get quick snaps of everyday happening, directly in your inbox.

We don’t spam! Read our privacy policy for more info.

- Advertisement -

Support our independent journalism PayPal (Outside India) For PayU (For Indian Readers).

Krishna Mali
Krishna Mali
Founder & Group Editor of TechGraph.

More Latest Stories

More Articles

Onlygood AI CEO Rajeev Sinha on Future of AI-Driven ESG Data and Supply Chain Transparency

Speaking to TechGraph, Rajeev Sinha, CEO & Co-founder of Onlygood.ai, shares insights on how his company is helping smaller businesses leverage AI and IoT...

Vishal Puri On Spalba’s Tech-Driven Approach To Venue Booking & Planning

Speaking to TechGraph, Vishal Puri, Co-Founder of Spalba, explains how its platform uses technologies like Digital Twins and real-time analytics to provide event planners with interactive previews while giving venue owners deep data to optimize sales and marketing strategies and help event planners make...

INTERVIEW: ADDA’s Krishanu Mukherjee on Transforming Gated Communities

In an interview with TechGraph, Krishanu Mukherjee, AVP of Growth at ADDA.io, explained how...

Choosing the Right Tax Consultant: A Guide for Businesses and Individuals

For both individuals and businesses, tax planning and compliance are crucial aspects of financial...

Wired vs. Wireless Headsets: A Comparative Guide for Evolving Audio Needs

Across a wide range of demographics, including gamers, fitness enthusiasts, business executives, and remote...

The Rise of Conversational AI: What It Means for Tech and SaaS Businesses

Back in the time, when AI was not as prominent, businesses used to struggle...

Union Budget 2025-26 Reactions: EV Makers Welcome Tax Relief and Infrastructure Investments

India’s electric vehicle industry has welcomed the Union Budget 2025-26, citing exemptions on capital...

Healthcare Reactions to Budget 2025-26: Experts Back Investments in Cancer Care & AI but Call for Broader Mental Health Policies

The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, has drawn mixed reactions...

Life Insurance Death Benefit Payouts: What Your Family Needs to Know

It is important to know more about life insurance policies and their operational modalities. The most important factor is, of course, the pre-fixed insurer...

Preparing Your Staff To Host A Successful Business Event In Another City

A business event, a convention, and exhibition, a trade show - all of these...

TradeFT Review: Comprehensive Platform Overview 2025

The financial markets are abuzz with some pretty exciting developments as 2025 gets underway,...

Krikya Bangladesh Casino App Review

The Krikya app delivers a seamless and engaging mobile gambling experience for users of...

Union Budget 2025-26: MSME Leaders Back Investment Limit Hike, Call E-Shram Expansion Crucial

The MSME sector has responded positively to the Union Budget 2025-26, with experts highlighting...

From GCC & AI to DeepTech Investments: How Tech Experts React to the Union Budget 2025

Finance Minister Nirmala Sitharaman’s Union Budget 2025-26 has drawn mixed reactions from technology industry leaders, particularly on the government’s push for deep tech and...

Union Budget 2025-26 Reactions: Education Sector Applauds AI, Skilling Initiatives but Flags Funding Gaps

India’s education sector leaders have responded to the Union Budget 2025-26 with optimism and concern. While the budget introduces key measures such as 50,000 new Atal Tinkering Labs, AI-focused Centres of Excellence, and broadband expansion in government schools, some experts argue that the ₹1.28...

Union Budget 2025: India’s AI Budget Allocation Stirs Mixed Reactions

India’s Finance Minister Nirmala Sitharaman's announcement of a ₹500 crore fund for a Centre...

Union Budget 2025: Investors, Startups React to Govt’s Push for Fund of Funds, FSS Scheme and Deeptech

The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman on Saturday, has drawn...

AI in Skill Development: What Budget 2025 Should Do to Close the Workforce Skills Gap

India, with its vast pool of young talent, faces a significant challenge: a widening...

Union Budget 2025 Expectations: Hospitality Sector Urges Budget Support for Tourism Growth and Workforce Development

With the Union Budget 2025 on the horizon, hospitality sector leaders are calling for...

Cash out Tether USDT to Renminbi in Guangzhou

If you need to quickly and safely Cash out Tether USDT to Renminbi in...

Union Budget 2025 Expectations: Insurance Sector Eyes Tax Incentives, Sops to Expand Health Insurance Reach

As Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2025 on February...

Solar, Renewable Sector Expects Tax Breaks, Subsidies for BESS & Solar Financing Reform From Budget 2025

As Union Budget 2025 approaches, renewable energy leaders are urging Finance Minister Nirmala Sitharaman...

Gaming Industry Eyes Budget 2025 for Relief on GST and Boosted AVGC Support

With the Union Budget just days away, the gaming sector is growing hopeful that...

Adoption of Low Code Platforms by MSMEs for Operational Efficiency of Their Supply Chains

Micro, small, and medium enterprises are the backbone of the world and account for...

Krikya Bangladesh Casino App Review

The Krikya app delivers a seamless and engaging mobile gambling experience for users of...

Union Budget 2025: Medical Education Seats Increased by 130% in 10 Years; 10,000 More to Be Added

Education sector Budget LIVE: Presenting the Union Budget 2025-26, Finance Minister Nirmala Sitharaman announced...

Union Budget 2025: Kisan Credit Card Loan Limit Increased to ₹5 Lakh Under Modified Interest Subvention Scheme

Finance Minister Nirmala Sitharaman, in her Union Budget 2025-26 speech, announced an increase in...

Union Budget 2025 LIVE: FM Sitharaman Announces Reforms in Finance Sector; Increases FDI Limit to 100%

Finance Minister Nirmala Sitharaman, while presenting the Union Budget for 2025-26 in Parliament today,...

Union Budget LIVE: Finance Minsiter Nirmala Sitharaman Tables India’s Budget for 2025-26

LIVE Union Budget Coverage: The Union Budget 2025, set to be presented by Finance...

Union Budget 2025-26: MSME Leaders Back Investment Limit Hike, Call E-Shram Expansion Crucial

The MSME sector has responded positively to the Union Budget 2025-26, with experts highlighting...

Gaming Industry Eyes Budget 2025 for Relief on GST and Boosted AVGC Support

With the Union Budget just days away, the gaming sector is growing hopeful that...

Budget 2025: Tax Reforms, Infrastructure Financing, and NBFC Support Top Budget Wishlist

As Budget 2025 approaches, experts from the NBFC, finance, and business sectors are voicing...

Adoption of Low Code Platforms by MSMEs for Operational Efficiency of Their Supply Chains

Micro, small, and medium enterprises are the backbone of the world and account for...