According to sources, Yahoo has struck a settlement with millions of people whose email addresses and other personal information were stolen in the largest data breach in history.
Yahoo is back in the courtroom with a revised settlement proposal meant to make amends for its massive data breaches. If this proposal is approved, the company will pay $117.5 million.
In January, Judge Lucy Koh rejected Yahoo’s first settlement proposal. It called for a $50 million payout and two years of free credit monitoring for about 200 million people in the US and Israel. But Koh rejected the initial proposal because it didn’t say how much the settlement was worth or how much victims might expect to recover.
Koh said the original settlement was not “fundamentally fair, adequate and reasonable”
Now, it’s up to Koh to decide if this proposal gets it right.
The case is In re: Yahoo Inc Customer Data Security Breach Litigation, U.S. District Court, Northern District of California, No. 16-md-02752.
Separately, Verizon agreed to spend $306 million between 2019 and 2022 on information security, five times what Yahoo spent from 2013 to 2016. It also pledged to quadruple Yahoo’s staffing in that area.
“The settlement demonstrates our strong commitment to security,” Verizon said in a statement.
Yahoo agreed in July 2016 to sell its internet business to Verizon for $4.83 billion