Yahoo loses its bid to reject data breach lawsuit

US data breach victims can sue Yahoo

Yahoo users can sue over data breaches, judge rules

Yahoo, and its parent company Verizon, will now have no choice but to face the USA lawsuits against it over the company's multiple data breaches.

Koh on Friday night rejected a Verizon bid to dismiss many claims against Yahoo, Reuters reports, including negligence and breach of contract.

The lawsuit accuses Yahoo of failing to disclose to its users a series of three major data breaches that hit the company between 2013 and 2016. Other customers had to pay out to credit bureaus to freeze their accounts.

Zack Whittaker can be reached securely on Signal and WhatsApp at 646-755-8849, and his PGP fingerprint for email is: 4D0E 92F2 E36A EC51 DAAE 5D97 CB8C 15FA EB6C EEA5. However, Verizon found itself in the soup after Plaintiffs' amended the complaint once Yahoo accepted that all 3 billion user data on the service were affected severely.

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The case is In re: Yahoo Inc Customer Data Security Breach Litigation, U.S. District Court, Northern District of California, No. 16-md-02752.

The breaches exposed usernames and passwords used to login to Yahoo accounts to hackers.

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.

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Lead plaintiff Kimberly Heines says hackers used information stolen from her Yahoo emails to pilfer her Social Security payments, causing her to fall behind on bills and incur late fees.

The plaintiffs' claims demonstrated that they would have "behaved differently" if they'd known about Yahoo's email security woes, Judge Koh said, and that Yahoo's attempts to limit liability were "unconscionable" given how much it knew about its security problems and how little it did.

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

Karim Baratov, a Canadian national hired by the Russian government to perform various hacks, pleaded guilty last November to various computer hacking and conspiracy charges.

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