Those Who Got Pwned In Yahoo Data Breaches Can Sue Says US Judge

This isn’t good news if you’re Verizon who now owns Yahoo. I say that because the company has been ordered by a federal judge to face much of a lawsuit in the United States claiming that the personal information of all 3 billion users was compromised in a series of data breaches:

In a decision on Friday night, U.S. District Judge Lucy Koh in San Jose, California rejected a bid by Verizon Communications, which bought Yahoo’s Internet business last June, to dismiss many claims, including for negligence and breach of contract. Koh dismissed some other claims. She had previously denied Yahoo’s bid to dismiss some unfair competition claims.

[…] The plaintiffs amended their complaint after Yahoo last October revealed that the 2013 breach affected all 3 billion users, tripling its earlier estimate. Koh said the amended complaint highlighted the importance of security in the plaintiffs’ decision to use Yahoo. ‘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. She also said the plaintiffs could try to show that liability limits in Yahoo’s terms of service were “unconscionable,” given the allegations that Yahoo knew its security was deficient but did little.

I’m pretty sure that if you factor in the number of people who were affected by this pwnage and the potential cash that could be extracted from Verizon, this is going to get settled out of court pretty quickly. Because fighting and losing is going to get expensive in a hurry and even Verizon doesn’t have that kind of cash. The question is, how long will that take to happen.

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