A Yahoo data breach settlement might come to fruition, if a judge signs off on the proposal, as the company fights to put the lawsuit to rest…
US Federal District Judge Lucy Koh turned down a class-action settlement proposal made by defendant Yahoo back in January of this year. The legal action came as the result of the company failing to disclose two major data breaches, affecting 3 billion users from 2014 to 2016.
Yahoo Data Breach Settlement Proposal Seeks Judicial Approval
Yahoo said it would pay out $50 million and provide two years of free credit monitoring to approximately 200 million people in the United States and Israel. But Koh, rejected the offer, writing:
“The proposed notice does not disclose the costs of credit monitoring services or costs for class notice and settlement administration, and does not disclose the total size of the settlement fund. Without knowing the total size of the settlement fund, class members cannot assess the reasonableness of the settlement.”
Now, Yahoo is back in the courtroom. It’s presenting a revised proposal of $117.5 million.
From 2013 to 2016, Yahoo suffered three separate breaches. The first affected about 3 billion users, constituting the largest data leak in history. Another exposed the information of 500 million users in 2014. (It also represents one of the biggest data breaches in history.)