Yahoo settles 50 million U.S. dollars for giant data breach from 2016

Yahoo pays 50 million dollars to the victims of a large data breach discovered in 2016. Data from more than three billion accounts became available on the streets. That is the outcome of a settlement that applies to sun a billion accounts.

That’s what Associated Press reports today in a settlement report. Yahoo was charged with the data breach. After two years of litigation, this settlement was decided. This applies to roughly one third of the users affected, of which there are 200 million in Israel and the United States.

Consequences of leakage

The data leak took place in the course of 2013 and 2014, but only unveiled in 2016. Interestingly enough, this revelation took place after Yahoo had already made agreements with Verizon about a takeover. The $4.83 billion deal was then reconsidered by Verizon, which ultimately paid $350 million less for the damage to the brand and any compensation that would have to be paid.

Now Verizon has to pay one half of the settlement. The other half will be paid for by Atlaba Inc., a company that owns all of Yahoo’s investments in Asian companies and other interests since the takeover was completed. Altaba previously paid a fine of 35 million dollars for the fact that the leak was revealed to investors so late.

Make a claim

With the 50 million dollars, a fund will be set up that everyone who has to deal with the leak will be able to claim. Account holders receive compensation of $25 per hour for having dealt with the consequences of the leak. For people who can prove that they were involved in the leak, a maximum of 15 hours of lost time, or 375 dollars, applies.

For people without proof there is a maximum of 5 hours of compensation and a fee of $125. In addition, people with a premium email account, who paid between $20 and $50 a year for it, can get a quarter of that amount back.