Altaba, the investment company that resulted from Verizon’s acquisition of Yahoo!, has settled three ongoing legal cases relating to previously disclosed data breaches.
On Monday, Yahoo! agreed to end litigation for US$47million in a filing with the Securities and Exchange Commission following a data breach which came to light after Verizon’s bid to acquire the web giant for US$4.83billion.
After the breach was discovered, Verizon dropped its offer by US$350million and tried its best to dismiss the claims. Nevertheless, a federal judge said victims of the breach could sue Yahoo!.
“Class actions are known to provide their members with very modest compensation compared to individual lawsuits. The settlement (subject to approval by court) makes slightly above US$10 per breached account – a scanty amount in the GDPR era,” comments Ilia Kolochenko, CEO, High-Tech Bridge.
“Should a similar data breach happen today with the same disclosure timeline and similar circumstances, the amount of settlement could be significantly higher. Therefore, I think this is a considerable legal victory for Yahoo’s legal team.”
Written by Leah Alger