Yahoo is back in court, hopefully for the last time, as it seeks to settle the outstanding cases from the massive 2013 hack attack that saw three billion emails exposed.
Back in 2017 Yahoo had to finally admit that the data breach in 2013 had affected every one of its three billion user accounts. And the company faced heavy criticism at the time for its poor security and delays in reporting the attack.
Yahoo has submitted a revised settlement package to the California Northern US District Court. The settlement, if accepted, would apply primarily to Yahoo’s small business and personal email account holders in the US and Israel.
In January the district judge involved, Judge Lucy Koh, struck down Yahoo’s first proposed settlement package because she said that too much of the payout was being earmarked for attorneys and lawyers, rather than the affected customers whose data fell into the hands of the villains.
The revised settlement would see Yahoo payout $117.5 million to cover any damages as well as credit monitoring for any class action. Another $30 million covers attorney fees a reduction of $5 million from the first rejected settlement.
The named plaintiffs in the latest court action represent 896 million of Yahoo’s personal and small business customers exposed by the hack. And they will be able to claim up to $7,500 for themselves. All others will have to settle for two years of credit or a one-time cash payout.
For paid and small business accounts the payout could be 25 percent of what they paid for their Yahoo email services between 2012 and 216. For free email customers who don’t want credit the payout could be $100.
Yahoo said there was no limit to how many customers will be able to enrol for the credit monitoring service. They stated, ‘if all 196 million Class Members enrol, all will be covered for $24 million, shifting the risk of greater than historically anticipated enrolment to the vendor rather than the Settlement Fund.’
If the latest settlement is successful it will join other payouts Yahoo is looking to confirm with the SEC and the California State court cases.