LinkedIn to fork out $1.25 million after password hack lawsuit

The largest business-oriented social network, LinkedIn, has agreed to compensate some 800,000 people who were falsely assured in the security of the network.

Back in June 2012, a total of 6.5 million encoded LinkedIn passwords were posted on a Russian hacker site. The encoding was weak, and the hackers managed to get their hands on the passwords themselves.

The company was quick to react, upgraded its security immediately, but still advised all of their users to change their passwords.

Even though there had been no words that the breach actually hurt the company or any of the users, a group of users paying a subscription fee for extra services claimed the company falsely assured them it was using strong security measures to protect their personal information.

LinkedIn agreed to compensate some 800,000 American users who paid for the service in the period between March 2006 and June 2012. Those people are eligible to make a claim on the $1.25 million settlement fund – meaning every user will get approximately one dollar for the case.

However, only those who apply will receive a share of the fund, which means the actual payment to successful applicants will probably be larger.

Everyone who believes to be eligible to make a claim can find more details and instructions on how to apply at the official settlement page.

In a statement, LinkedIn said, “Following the dismissal of every other claim associated with this lawsuit, LinkedIn has agreed to this settlement to avoid the distraction and expense of ongoing litigation.”