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Yahoo Inc. and Yahoo Canada have reportedly reached a $20.3 million class action settlement over data breaches that affected approximately 5 million Canadians from 2013 to 2016.
The $20.3 million class action settlement was reportedly reached July 6. The Yahoo data breach class action lawsuit was certified for settlement purposes Aug. 26.
Plaintiffs Natalia Karasik of Ontario, Rahul Suryawanshi of Alberta and Eli Chami of Quebec are representing a Class of Canadian residents who had a Yahoo account at any time between Jan. 1, 2012, and Dec. 31, 2016.
Class Action: Yahoo Failed to Safeguard User Data
The Yahoo data breach class action lawsuit was initially launched in Ontario in December 2016. It alleges that the company failed to adequately safeguard user data, delayed notifying those affected by the data breaches and failed to adequately respond to the data breaches.
As a result of the Yahoo data breaches, Class Members allegedly suffered identity theft or an increased risk of identity theft and incurred costs for credit monitoring in order to mitigate the risks of potential identity theft.
Yahoo has denied responsibility for the data breaches, arguing that they were state-sponsored attacks.
According to the Yahoo data breach class action lawsuit, Yahoo had been affected by major data breaches in 2013 and 2014. The California-based web services company failed to disclose the Yahoo data breaches until late 2016.
Yahoo initially reported that 1 billion users were affected by the Yahoo data breaches. However, in October 2017, the company announced that all 3 billion user accounts had been affected.
Cybercriminals reportedly stole names, email addresses, phone numbers and security questions and answers. Hackers in 2015 and 2016 allegedly used forged cookies to access Yahoo email accounts.
A Yahoo class action lawsuit in the United States was reportedly settled in July for US$125 million. There are reportedly 190 million Class Members affected by the Yahoo data breach settlement.
Canada Settlement May Be Derailed by Saskatchewan Class Action
Other Yahoo data breach class action lawsuits were also initiated in other Canada jurisdictions, including British Columbia, Alberta, Saskatchewan and Quebec. The British Columbia and Alberta actions have joined with the Ontario class action lawsuit. The Quebec case has been stayed pending the outcome of the Ontario case.
The plaintiff in the Saskatchewan class action lawsuit sought to intervene in the Ontario case and argued that the proposed Yahoo class action settlement was inadequate. She argues that the laws of Saskatchewan and other provinces could potentially subject Yahoo to more liability and compel a higher settlement amount.
However, the judge dismissed the motion to intervene, finding that it is “indisputable that an action certified for settlement purposes is preferable to an uncertified and vigorously contested action in another jurisdiction.”
The judge noted that the Saskatchewan plaintiff could still oppose the settlement at the approval hearing. The success of the proposed Yahoo class action settlement will depend on the Saskatchewan case being dismissed or permanently stayed, he wrote in his order.
An approval hearing for the proposed Yahoo data breach class action settlement has been scheduled for Dec. 4, 2020.
Yahoo Data Breach Poses Challenges for Lawyers
According to lawyer Ted Charney, who represents the Canadian Class Members, the Yahoo class action lawsuit posed a challenge because it involved three separate data breaches. Further, the company was based in the United States, had sold its assets to Verizon and was involved in liquidation proceedings.
To add to the challenge, there has been little history of data breach class action lawsuits in Canada, and causes of action for privacy breaches are not well developed under the law.
“Nobody has had a trial yet about intrusion upon seclusion in the context of a cyberbreach,” Charney told The Lawyer’s Daily. “There’s been a few certification motions, but there’s very little of anything else in terms of developed law that would inform the types of damages that can potentially be awarded in these cases. We don’t have any substantive appellate decisions that thoroughly review cyberbreach litigation at this stage.”
Charney notes that the proposed $20.3 million class action settlement for 5 million Canadian Class Members is superior proportionally to the U.S. Yahoo data breach settlement.
It also far surpasses the previous $17.5 million record for a digital privacy breach settlement involving the loss of a portable hard drive containing personal data of 583,000 borrowers who were enrolled in the Canada Student Loans Program between 2000 and 2006.
Class Members are represented by Theodore Charney of Charney Lawyers PC.
The Yahoo Data Breach Class Action Lawsuit is Natalia Karasik, et al. v. Yahoo! Inc., et al., Case No. CV-16-566248-00CP, in the Ontario Superior Court of Justice.
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45 thoughts onYahoo to Settle Data Breach Class Action Lawsuit
I have used Yahoo for 15-20 years I would to be added to class action ty
Hi dear,
How does work this claim,
Do yahoo members open a claim or some one is behalf of us and update please!
Thanks.