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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.
Was your information compromised in the data breach? Tell us about it below.
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45 thoughts onYahoo to Settle Data Breach Class Action Lawsuit
I received an email from Charmey lawyers PC talking about the same class action. It seems that other law offices are also involved in the lawsuit. Which one should we follow?
I would also like to he added. Thanks.
The settlement approval hearing takes place in December. We will let our viewers know as soon as approval is granted and the claim form is online!
I was hacked and losed my Facebook account and all my memories pictures of my family and friends and very special moments in our lives and my yahoo account was compromised and used for what ever purpose the the person though was okay etc I would like to be added to this list also pls and thank u ?
I would like information on how to become a part of this class action lawsuit.
I did receive notice from Yahoo that my information had been compromised. I am a Yahoo Basic Account holder.
As an example of the result of the breach(es), I received an extortion scam email in March of this year. It was ridiculous, but Calgary Police told me that people do fall for these extortion scams and are shamed into paying the blackmail fee – which was demanded in Bitcoin. Following the advice of the Calgary Police, I reported it it to the Canadian Anti-Fraud Centre, including the information that the scammer cited a password that I had previously used for my account.
I wish to be included under the Category B Claim for wasted time and inconvenience responding to one or more of the Data Breaches.
Thank you and I look forward to hearing from you regarding this.
My situation is identical to yours, but I’m in Ontario. I too had this extortion email and believe it was the password that was compromised from my Yahoo account.
I too would like to be included in the action suit.
The settlement approval hearing takes place in December. We will let our viewers know as soon as approval is granted and the claim form is online!
I have had my yahoo account for over 20 years now and somewhere around the period in question, I had to change all my passwords and create other email accounts for more sensitive matters because several of my friends and people on my mailing list received spam emails. I would like to be included in the claims for the supreme inconvenience to me and my friends, not to mention any sensitive information that may have been taken from me.
Hi Cindy,
The settlement approval hearing takes place in December. We will let our viewers know as soon as approval is granted and the claim form is online!
Pat Davidson
Yes I’ve had a yahoo email and recall the breach
Can I be added I had an email from Yahoo letting me know about the data breach a while ago. Please add me. I am definitely upset about my data being compromised I’ve also had my yahoo account for over 20 years or close to it all my contacts very important ones were also in my account so it scares me every day that I might have a case of someone having or have and are going to use my information in the future. Thank you
Reply
The settlement approval hearing takes place in December. We will let our viewers know as soon as approval is granted and the claim form is online!
i am very upset that my identity and mydata were compromised,i
would like to be added to the claim
I had an yahoo account can u pls add me
The settlement approval hearing takes place in December. We will let our viewers know as soon as approval is granted and the claim form is online!
Yes I’ve had a yahoo email and recall the breach
Can i be added
The settlement approval hearing takes place in December. We will let our viewers know as soon as approval is granted and the claim form is online!
I had an email from Yahoo letting me know about the data breach a while ago. Please add me.
The settlement approval hearing takes place in December. We will let our viewers know as soon as approval is granted and the claim form is online!
I am definitely upset about my data being compromised
The settlement approval hearing takes place in December. We will let our viewers know as soon as approval is granted and the claim form is online!
i am upset and worried that my identity and my data were compromised, would like to be added for the claim
thanks
I am someone whose data was breached as a yahoo user. I received notification, a year after the fact. The letter is long gone, but I would like to know about access to the settlement for this breach. I still hold the account in question.