Economy

Judge Rules Victims of Yahoo Data Breach Can Sue

Judge Rules Victims of Yahoo Data Breach Can Sue

Yahoo was accused of being too slow to disclose three data breaches that occurred from 2013 and 2016, increasing users' risk of identity theft and requiring them to spend money on credit freeze, monitoring and other protection services.

A U.S. federal judge has ordered Yahoo to face legal action over a series of data breaches that exposed the personal data of three billion users.

In a ruling issued Friday night, U.S. District Court Judge Lucy Koh rejected nearly all of Verizon's dismissal requests, through she did dismiss a small number of claims.

Of the sixteen motions to dismiss proposed by Yahoo, Koh granted six and denied 10 which will decrease the size of the plaintiff class considerably.

Judge Koh previously dismissed an earlier attempt by Yahoo to have the lawsuit thrown out, after the company claimed that the hacks it suffered were the result of advanced tactics by attackers rather than a failure of the company's security protocols.

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Judge Judy Koh just ruled that victims can sue Yahoo following the hacks, dismissing Verizon's request to dismiss these suits.

Yahoo reached an $80 million settlement this month with investors over claims that executives concealed the data breaches to artificially inflate share prices.

"The claims are baseless, and can't comment beyond that because of pending litigation", said Bob Varettoni, a Verizon spokesman.

While Yahoo initially reported one billion users were exposed by one hack and 500 million exposed by another, the company revised its figures a year ago and disclosed that three billion users in total were put at risk as a result of the hacks. She added that the amended complaint showed that security was an important factor in plaintiffs' decision to use Yahoo.

If you're one of the US-based victims of these breaches and are seeking some sort of retribution/compensation, you can take your chance against the company knowing that your case will go forward. One of the accused hackers, Karim Baratov, pleaded guilty in Canada late previous year. The other three have not been apprehended and are believed to be in Russian Federation.


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