Yahoo Agrees to Pay $50 Million in Damages to Settle Data Breach Lawsuit
The State of Security
Yahoo has agreed to pay $50 million to help settle a lawsuit that seeks to hold the company responsible for a data breach the company suffered several years ago.
On 23 October, Yahoo said it would pay $50 million and provide two years of free credit-monitoring services to 200 million people whose email addresses and personal information were exposed in the data security incident. That event exposed a total of 3 billion Yahoo accounts.
In this settlement, the Internet Services company said it would cover the losses of upwards of 200 million people who held a combined total of one billion Yahoo accounts at the time of the breach. Altaba Inc., a company which Yahoo set up after it agreed to sell its digital services to Verizon Communications, paid the other half to the U.S. Securities and Exchange Commission in the form of a fine for the email provider’s failure to disclose the incident on a timely basis.