Yahoo! proposed a settlement package for millions of users worth $117.5 million Tuesday. Those users had personal data, including email address, stolen in what was the largest data breach in history.
Original Settlement Not ‘Fundamentally Fair’
Three breaches took place between 2013 and 2016, with 3 billion accounts affected. Users accused Yahoo! of not disclosing those breaches fast enough. The company faced a class action lawsuit.
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The updated settlement proposal contained at least $55 million for victims’ out-of-pocket expenses and other costs. It also included $24 million for two years of credit monitoring and up to $30 million assigned to legal fees. A further $8.5 million was set aside in the settlement for other expenses.
A Judge in San Jose, California had rejected the settlement previously proposed by Yahoo! in January. Judge Lucy Koh described the original settlement as not “fundamentally fair, adequate and reasonable.” She will decide whether the new proposal is acceptable.
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