Privacy & Data Security Law News

Ex-Yahoo Directors Settle Data-Breach Claims for $29 Million

Nov. 2, 2018, 3:59 PM

Former directors of Yahoo Inc. agreed to a $29 million settlement with investors who blamed them for failing to oversee security of users’ data and one of the largest computer-security breaches in history.

The settlement will resolve three lawsuits in California and Delaware against ex-Yahoo directors, including former CEO Marissa Mayer.

Board members also were accused of failing to properly disclose the 2014 hack, which exposed the names, passwords and other data of more than 3 billion users.

The agreement brings the total settlements of cases over multiple Yahoo hacks to more than $100 million.

The money from the settlement, which will be paid by insurance, will go to Altaba, a holding company created after Verizon Communications Inc. acquired Yahoo for $4.5 billion last year.

The case is Oklahoma Firefighters Pension and Retirement System v. Eric Brandt, Del. Ch., 0133, 2017

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To contact the reporter on this story: Jef Feeley in Wilmington, Delaware at jfeeley@bloomberg.net

To contact the editors responsible for this story: David Glovin at dglovin@bloomberg.net, Joe Schneider

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