Judge Rules Users Can Sue Company Over Hack

Judge Rules Users Can Sue Company Over Hack

A USA federal judge has ruled that victims affected by Yahoo's various data breaches can sue the tech firm.

California judge Lucy Koh rejected a bid by Verizon, which bought the internet giant past year, to dismiss a large portion of the claims, including breach of contract, deceit and concealment, and negligence.

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. She had previously denied Yahoo's bid to dismiss some unfair competition claims.

In October 2017, the search engine and email provider admitted that all 3 billion accounts had been breached, making it potentially the largest (in number of users affected) data breach of all time.

While Yahoo initially reported one billion users were exposed by one hack and 500 million exposed by another, the company revised its figures past year and disclosed that three billion users in total were put at risk as a result of the hacks.

In 2014, a separate data breach resulted in the theft of similar information associated with 500 million accounts; the company disclosed that breach in September of 2016.

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Based on the new revelation, the plaintiffs amended their complaint. they had claimed the hack led to their information being leaked and subsequently used for fraudulent activities.

In the wake of announcing the breaches, Yahoo sent emails to impacted users forcing password changes and voiding unencrypted security questions.

U.S. District Judge Lucy Koh ruled on Friday night that a class action lawsuit against Yahoo can move forward.

Seeking a dismissal, Yahoo claimed it had relentlessly faced criminal attacks for long. Reuters reported that, last March, U.S. prosecutors charged four individuals in connection to one of the breaches - including two Russian intelligence agents and a Canadian citizen.

Newsweek quoted US Attorney for the Northern District of California Brian Stretch as then saying, "Silicon Valley's computer infrastructure provides the means by which people around the world communicate with each other in their business and personal lives".

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