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Yahoo to pay $50m in damages following data breach

(Image credit: Image Credit: Dennizn / Shutterstock)

Yahoo has agreed to pay $50 million in damages to over 200 million victims of its notorious 2014 data breach.

The payment will go to users in the US and Israel affected in the attack, with Yahoo also having to pay $35 million in legal fees and provide all US victims with credit monitoring services for two years.

The deal is subject to final approval from U.S. District Judge Lucy Koh of the Northern District of California at a hearing slated for November 29.

The cost of the agreement will be split in half, between Yahoo's parent company Oath and Altaba.

This is the aftermath of one of the world’s biggest data thefts, which occurred in 2013 and 2014. It wasn’t disclosed until 2016, when Yahoo agreed to sell its digital services to Verizon Communications for $4.83 billion.

After disclosing the breach, the price fell by $350 million to reflect the ruined brand name.

It was said that some three billion Yahoo accounts were hit by hackers. The FBI claimed that some of the hackers were Russian. Today's settlement covers roughly one billion of those accounts, held by some 200 million people in the US and Israel.

Image Credit: Dennizn / Shutterstock

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.