Dissolving Yahoo Successor Must Keep $800 Million for Data Suit

Altaba Inc., successor entity to the former Silicon Valley giant Yahoo Inc., must retain $800 million as it dissolves to cover the maximum damages it could face in connection with a Canadian data breach class action, a Delaware judge ruled.

Vice Chancellor J. Travis Laster set the amount in a post-trial ruling for Delaware’s Chancery Court, citing Altaba’s agreement to split any data breach damages with Verizon Communications Inc., which later bought and resold the Yahoo business through subsidiary Oath Holdings Inc.

Laster, writing Monday, acknowledged that the $800 million figure reflects the unlikely maximum exposure in the ...