Judge Will Allow Yahoo Users To Sue Over Massive Data Breach
Yahoo users in the United States can sue the company over the former tech giant's massive, record-setting data breach.
On Friday in San Jose, U.S. District Judge Lucy Koh rejected the bid by Verizon, Yahoo's owner, to dismiss many claims, such as negligence, breach of contract, fraud and deceit by executives who are accused of knowing about the security problems, but doing nothing and hiding them from the public. However, Koh trimmed some claims from the consolidated class-action lawsuit.
The breaches of Yahoo accounts, which happened from 2013 to 2016, were not disclosed quickly enough, the plaintiffs charge.
"Plaintiffs' allegations are sufficient to show that they would have behaved differently had Defendants disclosed the security weaknesses of the Yahoo Mail system," Koh wrote in her ruling.
The Silicon Valley company admitted in October that the breach affected all 3 billion users, whose names, email addresses, phone numbers, dates of birth, scrambled passwords and security questions and answers may have been stolen.
According to court documents, harms to plaintiffs included: Social Security earnings being stolen from a bank account; credit problems because of fraudulently opened accounts; fraudulent charges on credit cards; fraudulently filed tax returns; and more.
Last year, U.S. prosecutors charged two Russian intelligence agents and two hackers in connection with one of the breaches. One of the accused hackers, Karim Baratov, pleaded guilty in Canada late last year. The other three are reportedly at large in Russia.
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