INTERNET HAS-BEEN Yahoo has agreed to pay $50m (£38.6m) in damages to 200 million people affected by its 2013 mega-hack.
The breach in question, which wasn't made public until 2016, affected some 200 million US consumers and three billion email accounts worldwide. Yahoo initially said the hack affected one billion accounts, but that number was updated to all three billion in 2017.
This attack saw hackers - who were believed to be state-sponsored, with the US linking some of them to Russia - make off with users' personal information including names, email addresses, dates of birth, phone numbers and hashed passwords that could be cracked.
Yahoo has maintained that passwords, credit card numbers and bank account information were not stolen in the attack.
As part of a settlement reached this week in a San Francisco court, Yahoo has agreed to pay out $50m to more than 200 million account holders who were affected by the breach.
Verizon, which acquired Yahoo in 2017, will pay half the settlement cost, while Altaba, the company formed from the ashes of Yahoo's sale to Verizon, will pay the other half.
In addition, Yahoo will cover up to $35m on lawyer fees related to the case and provide affected users in the US with credit monitoring services for two years.
Those who paid for a premium email account from Yahoo will be able to claim a 25 per cent, while non-Premium account holders will be able to file for compensation at the rate of $25 per hour spent handling issues related to the breach.
Back in April, the Securities and Exchange Commission (SEC) fined the company $35m for failing to properly notify customers and investors in a timely fashion about the data breach.
"Although information relating to the breach was reported to members of Yahoo's senior management and legal department, Yahoo failed to properly investigate the circumstances of the breach and to adequately consider whether the breach needed to be disclosed to investors," the SEC said at the time. µ
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