Yahoo to pay $50M, other costs for massive security breach
Yahoo has agreed to pay $50 million in damages and provide two years of free credit-monitoring services to 200 million people whose email addresses and other personal information were stolen as part of the biggest security breach in history.
The restitution hinges on federal court approval of a settlement filed late Monday in a 2-year-old lawsuit seeking to hold Yahoo accountable for digital burglaries that occurred in 2013 and 2014, but weren't disclosed until 2016.
It adds to the financial fallout from a security lapse that provided an end to Yahoo's existence as an independent company and former CEO Marissa Mayer's six-year reign.
Yahoo revealed the problem after it had already negotiated a $4.83 billion deal to sell its digital services to Verizon Communications. It then had to discount that price by $350 million to reflect its tarnished brand and the specter of other potential costs stemming from the breach.
About 3 billion Yahoo accounts were hit by hackers that included some linked to Russia by the FBI. The settlement reached in a San Francisco court covers about 1 billion of those accounts held by an estimated 200 million people in the U.S. and Israel from 2012 through 2016.