Yahoo Data Breach Leads to $50 Million Settlement
Photo Credit: Photo: Maret Hosemann

Yahoo Data Breach Leads to $50 Million Settlement

Arriana McLymore

Arriana McLymore. Oct 25, 2018.

Nearly 200 million Yahoo users in the U.S. and Israel are expected to receive checks from the company now that a two-year legal battle has ended.

Yahoo has agreed to a $50 million settlement after a 2016 data breach impacted its email accounts. The company has been providing AllClear credit monitoring services for all impacted users over the span of two years.

When the cyber-attacks initially happened in 2013, Yahoo originally disclosed that 1 billion of its users were impacted by the breach. The company later announced 3 billion of their email users were affected.

Oath, which now owns Yahoo, will pay half of the settlement along with holding company Altaba.

Yahoo’s settlement shines a light on the potential future of data breach settlements. In July, Target reached an $18.5 million settlement for its 2013 hacks. Now, eyes are on Facebook for its most recent hacks and Cambridge Analytica scandal.