Yahoo users can sue over data breaches, judge rules

Yahoo users can sue over data breaches, judge rules

United States federal judge, setting a new benchmark in data breach cases, asked Yahoo to face the lawsuit in the federal securities class action suit filed by the shareholders.

Yahoo's parent company, Verizon Communications, had attempted to have many claims thrown out, saying that company was the target of "relentless criminal attacks", Reuters first reported.

In a decision on Friday night, U.S. District Judge Lucy Koh in San Jose, California rejected a bid by Verizon Communications Inc, which bought Yahoo's Internet business last June, to dismiss many claims, including for negligence and breach of contract.

Additionally, Koh granted a motion to dismiss claims made under the California Customer Records Act, and claims of breach of implied covenant of good faith and fair dealing.

The plaintiffs amended their complaint after Yahoo last October revealed that the 2013 breach affected all 3 billion users, tripling its earlier estimate. It was called "one of the most audacious hacks of all time".

Victims of Yahoo's data breach can sue the company, a federal judge ruled.


The data hack is the largest in history. The company has been accused of dragging its feet in revealing the data breaches.

"Even if his annual fee did not provide for security measures above and beyond those for free accounts, Plaintiff Mortensen pleads that Defendants' representations about security formed part of the reason for him to use Yahoo!"

All told, Yahoo's 3 billion users suffered exposure of privileged information including names, email addresses, social security numbers, bank accounts, home addresses, ZIP codes, occupations, birth dates and personal preferences. They alleged that Yahoo knew about security vulnerabilities back in 2012 and about a 2014 hack as it occurred.

Meanwhile, Yahoo, in its defense brought out the fact that the USA government charged two Russian agents and two hackers of sabotage and identity theft of 500 million accounts.

"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 decision, which was obtained by International Business Times. The other defendants remained at large in Russian Federation.

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