Yahoo proposes $117.5 million for the settlement of data breach

Yahoo is continuously trying to settle a lawsuit on the massive data breach over the period of 2013 to 2016. This time Yahoo could pay $117.5 million for the settlement of 3 billion hacked accounts.

As the news was first published by the team of Reuters, “Yahoo has struck a revised $117.5 million settlement with millions of people whose email addresses and other personal information were stolen in the largest data breach in history”.

If this proposal is approved, the company will pay $117.5 million.

In January, Yahoo agrees to pay $50 million to data breach victims but the Judge (Lucy Koh) has rejected Yahoo’s proposed settlement over data breaches.

The new settlement includes at least $55 million for victims’ out-of-pocket expenses and other costs, $24 million for two years of credit monitoring, up to $30 million for legal fees, and up to $8.5 million for other expenses. – says Reuters

Why Yahoo is going to pay hundreds of Millions of Dollars? Yahoo, which is acquired by Verizon Inc, had been charged to disclose the information of data breach because they were slow to disclose the affect of data breach to its users.

On the other end, Verizon is now taking the security of their users more seriously because it will now be responsible for half of the settlement cost, with the other half paid by Altaba Inc, the company set up to hold Yahoo’s investments in Asian companies after the sale. And if the same thing happened in future, Verizon will be responsible.

Considering the past and current situations, Verizon is planning for future and agreed to spend an amount of $306 million to tighten its information security. The time frame for this amount is between 2019 to 2022.

Unluckily, Yahoo faced three massive data breaches in the year between 2013 to 2016. Its first data breach was the most disastrous breach that exposed the information of almost three billion users. Right after an year, it again exposed 500 million users. The leaked personal information included passwords that were encrypted but could be cracked by the hackers.

From past few years, Yahoo is the name which remains on top, when it comes to the biggest data breaches around the world.

About the author:

Susan Alexandra is an independent contributor at Securitytoday and Tripwire. She is a small business owner, traveler and investor of cryptocurrencies. Susan’s inbox is open for new ideas and stories, you can share the story idea to susanalexandra67@gmail.com

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Pierluigi Paganini

(SecurityAffairs – Yahoo data breach, settlement)

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