Yahoo’s massive hack which affected some 200 million users in the United States and over three billion email accounts globally has proven to be a costly one for the company. It was hit with class action lawsuits after the hack was disclosed. Yahoo has now agreed on a $50 million settlement which it will be paying to the victims of this security breach.
A court filing reveals that Yahoo has proposed to divide $50 million in compensation to an estimated 200 million users in the United States and Israel. It will also cover up to $35 million in lawyer fees related to the class action lawsuit. Affected users in the United States will be provided with credit monitoring services for two years through AllClear. That itself has a retail value of $350.
The company has also detailed compensation packages for small businesses and individuals so that they can claim back costs that they had to incur due to the hack. These costs could be related to identity theft, delayed tax refunds, and more. Lastly, customers who paid for Yahoo’s premium email services will be able to get a 25 percent refund.
U.S. District Judge Lucy Koh of the Northern District of California has to give final approval to this settlement. Her ruling on the matter will likely come at the hearing that’s scheduled for November 29th.