Oct 23, 2018 - Technology

Yahoo reaches $50 million settlement from massive security breach

Yahoo headquarters sign.

Photo: Justin Sullivan/Getty Images.

Yahoo has agreed to pay $50 million in damages as well as provide two years of free credit-monitoring services to the 200 million people whose email addresses and other personal information were stolen in a security breach, per the Associated Press.

Why it matters: The settlement stems from a two-year-old lawsuit seeking accountability for information that was stolen in 2012 and 2014, but wasn’t disclosed until 2016, in the biggest security breach in history. (Facebook's breach this year was 50 million.)

The details: Because Verizon Communications bought Yahoo's digital services after the breach, Verizon will pay for half of the settlement cost.

  • The other half will be paid by Altaba Inc., a company that was set up to hold Yahoo’s investments in Asian companies and other assets after the sale.
  • Altaba already paid a $35 million fine to the Securities and Exchange Commission for Yahoo’s delay in disclosing the breach to investors, per AP.

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