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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