Yahoo to pay $117 million to settle class action over major data breaches

Yahoo will pay approximately A $117 million to settle a lawsuit over multiple data breaches. The lawsuit alleged that the company negligently disclosed  users’ personal information, including email addresses, phone numbers, dates of birth, other account information, as well as security passwords. According to the complaint, Yahoo users were subject to numerous disclosures of personal information, despite assurances from the company of privacy protection.

The complaint claimed that the massive breaches were due to Yahoo’s disregard of users’ privacy interests and threats. The Yahoo data breach class action lawsuit contended that the plaintiffs and Yahoo users would not have signed up for the service had they known their private information would be compromised.

Under the terms of the Yahoo data breach class action settlement, Yahoo will improve security measures when it comes to user data.

Class Members will receive identity theft and fraud protection for two years through a credit monitoring service called All Clear. Alternatively, Class Members who do not need the credit monitoring service can opt for a payment estimated to be between $100 and $358.

American Class Members will need to provide documentation proving they already have credit monitoring services; however, those in Israel will not need to provide proof.

Those who suffered fraud or identity theft can claim reimbursement under the Yahoo data breach class action lawsuit for up to $25,000 for out-of-pocket expenses.

Class Members who paid for certain Yahoo services, including premium email or ad free service, may be able to claim reimbursement for up to 25 percent of what they paid for the service between Jan. 1, 2012 and Dec. 31, 2016.

In addition, those who used Yahoo’s small business services can claim up to $500 per year of service during the Class Period.

The deadline for Class Members to object to or exclude themselves from the Yahoo data breach class action settlement is March 6, 2020. The potential reward is:

  • Two years of credit monitoring or $100 to $358.80 cash;
  • Lost time $25 per hour up to 15 hours or unpaid time off work at your actual hourly rate, whichever is greater;
  • $25,000 in out-of-pocket losses.