Yahoo Agrees to $50 Million Settlement for Those Affected by the 2013 Data Breach

October 24, 2018, 5:03 PM UTC

Yahoo has agreed to pay a $50 million settlement to roughly 200 million people affected by the email service’s 2013 data breach, known as the largest corporate data security breach.

Up to 3 billion accounts had their emails and other personal information stolen in the hacking, but the settlement filed late Monday only applies to an estimated 1 billion accounts, held by 200 million people in the United States and Israel between 2012 and 2016, when the data breach was revealed.

A hearing to approve this proposed end to the two-year lawsuit will be held in California on Nov. 29. If approved, the affected account holders will be emailed a notice. Alerts will also be published in People and National Geographic, the Associated Press reports.

Claims to a portion of the $50 million can be made by account holders who suffered a loss (such as identity theft or delayed tax refunds) as a result of the data breach. Those with eligible claims will be compensated for time spent handling these losses at a rate of $25 per hour, up to $375 with documentation.

Premium Yahoo account holders will also be eligible for a 25% refund, and all account holders affected will receive free credit-monitoring services through AllClear for two years. Yahoo will also have to pay $35 million in lawyer fees, TechCrunch reports.

Settlement costs will be split between Oath, the Verizon subsidiary that owns Yahoo, and Altaba, the unpurchased portion of Yahoo that was renamed following the sale.

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