Michael A. Kakuk  |  October 17, 2016

Category: Consumer News

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Yahoo Internet portal and e-mail service start page October 20,Another Yahoo class action lawsuit has been filed against the tech giant for failing to keep its customers’ data secure, as well as failing to inform the public in a reasonable amount of time after a massive security breach.

Yahoo announced on Sept. 22, 2016, that two years earlier a “state-sponsored actor” had stolen personal information of approximately 500 million Yahoo users.

Information obtained by the hackers included consumers’ names, email addresses, telephone numbers, security questions, and encrypted passwords.

The class action notes that Yahoo did not explain why it took so long to discover the hacking of its sensitive information, or how long Yahoo had known of the data breach prior to its press release.

The Yahoo email data breach class action lawsuit cites a report from the Financial Times which stated that Yahoo executives knew about the data breach in July of 2016, but did not disclose it to the public until September.

The complaint asserts that “Yahoo’s delayed disclosure of the 2014 data breach reveals (a) for two years, Yahoo failed to securely store its users’ confidential, sensitive personal information; and (b) Yahoo failed to timely notify its users of the 2014 data breach.”

The class action states that Yahoo’s website attracts more than one billion visitors each month, and has collected personal data on hundreds of millions of Internet users.

Though Yahoo’s privacy policy states that it takes the privacy and security of its users’ information “seriously,” the class action disputes that claim.

According to the complaint, Yahoo’s email accounts were hacked by the Chinese military in 2010, along with other internet companies such as Google.

The class action contends that Google took the threat of additional data breaches seriously, by hiring “hundreds of security engineers” and adopted an internal motto of “never again.”

However, unlike Google, Yahoo calls its own security team “The Paranoids” and allowed their requests to be overridden by other departments within the company, according to the lawsuit.

Because of this lack of internal security, the class action argues, Yahoo negligently allowed the data breach and breached its implied contract with users.

In addition, the class action alleges that Yahoo violated California consumer protection law by not disclosing the breach as soon as the company discovered it.

This is not the first class action filed against Yahoo for this data breach. A Sept. 26, 2016, article on TopClassActions.com reported that several lawsuits were filed against Yahoo for the 2014 data breach. Those lawsuits make similar allegations against the company.

This Yahoo email data breach lawsuit seeks to represent a Class of “[a]ll persons in the United States who were or are Yahoo account holders and whose personal information was accessed, compromised, or stolen as a result of the data breach announced by Yahoo on September 22, 2016.”

The class action is asking for restitution and damages, including punitive damages, and free credit-monitoring services for every member of the proposed Class.

Plaintiff Gary Hirt states that he is a Yahoo user, and gave the company his “private, sensitive personal information.”

After learning of Yahoo’s data breach, Hirt claims that he enrolled in a credit-monitoring program and “suffers from anxiety and distress as a direct result of Yahoo’s misconduct.”

Hirt is represented by Francis A. Bottini, Jr., Albert Y. Chang, and Yury A. Kolesnikov of Bottini & Bottini, Inc.

The Yahoo Email Data Breach Class Action Lawsuit is Gary Hirt v. Yahoo! Inc., Case No. 5:16-cv-05911, in the U.S. District Court for the Northern District of California, San Jose Division.

UPDATE: On Jan. 28, 2019, a federal judge denied a $50 million Yahoo class action settlement, finding the proposed deal lacked specific information about ways the tech company would improve data security.

UPDATE 2: On July 20, 2019, a federal judge has preliminarily signed off on a $117 million class action settlement agreement between Yahoo and accountholders who were affected by numerous data breaches.

UPDATE 3: September 2019, the Yahoo data breach class action settlement is now open. Click here to file a claim. 

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141 thoughts onYahoo Faces Another Class Action Over 2014 Data Breach

  1. Sherell Johnson says:

    I’ve had Yahoo for so long and still use it !

  2. Nancy says:

    I have had yahoo for as long as I can remember. For the last 2 years my bank account, amazon account and facebook account has taken numerous hits. My bank account I lost about 3000. Have not been able to recoop. My tech told me that my yahoo account had been hacked and they had attached themselves to my account. Buying merchandise, playing online games…etc. Yahoo has cost me thousands of dollars. When the tech opened my pc to whip clean, there were over 50 credit card number. 3 were mine , I have no idea who the rest belonged to.

    1. Lissa says:

      Wow, that’s sad. I hope they get this cleared up for you soon

      1. Nancy says:

        Thank you Lissa.

  3. whatev says:

    We wait. We wait until topclassactions posts an update. We wait until there is a signup available.

  4. Carol L Bayles says:

    My family and I have had Yahoo since 2001. What do you need from us, we save everything.

  5. Jane Seltzer says:

    I have had yahoo for probably 3 decades. Does this mean I am also a part of the lawsuit?

  6. J. Williams says:

    So whats next. I still get Yahoo error messages. Not happy.

  7. Danielle Williams says:

    When should we all expect someone to contact about any claims?

  8. Amy says:

    I’ve had Yahoo for almost 2 decades!

    1. Nancy Sinclair says:

      Me too, I’ve used Yahoo as my home page and a mailing address for 2 decades.

  9. William Harbour says:

    I’ve had Yahoo for over 6 years

  10. Frances Coffi says:

    I have yahoo.

    1. linda fern says:

      i have yahoo

      1. L. Lewis says:

        I have yahoo as well Ive had the same email for like 10+ years

    2. Madaline Harbor says:

      I have yahoo, which I have been having for years! What happens now!

      1. Schmata says:

        They will keep us looped in on the progress. Usually they don’t post the sign-up form until the lawsuit is reaching resolution. I have been paid twice by settlements from this site. It’s not much. One was about $20 the other around $50. Just a little extra spending money but it’s cool to spend 5 minutes or less signing up and get a little payoff a few months later.

        1. Just Someone says:

          How much you get paid from this website depends on how much you buy and do. I have made almost $300 from this site in recent years. I wouldn’t sign up for this lawsuit because even tho I have used Yahoo on and off for the last 20 years I don’t attach any personal info to any web based email for this reason. This is the internet… we’re all fair game. We’re all little minnows swimming among a sea of sharks.

        2. Lissa says:

          How’s you sign up, or who do you complain to to get paid for this foolishness?

        3. TT says:

          I have recieved money from companies that was listed also.

        4. Cynthia Silas says:

          How do we sign up? I did not see any information on that. Thanks

    3. joyce Davis says:

      I have been trying to file on to this CLASS action. How do I do it?

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