U.S. District Judge Lucy Koh in San Jose on Friday rejected the bid by Verizon, Yahoo's owner, to dismiss many claims, such as negligence, breach of contract, fraud and deceit by executives who are accused of knowing about the security problems, but doing nothing and hiding them from the public. The breaches were not made public until after Verizon announced its plans to purchase the company for almost $4.5 billion.
The lawsuit claims that personal information belonging to several billion people was compromised in a series of three breaches.
The decision, made by U.S. District Judge Lucy Koh in San Jose, California, rejected an appeal from Verizon, which bought Yahoo last June, to dismiss numerous claims made against Yahoo in the lawsuit, including alleged negligence and breach of contract. Koh dismissed some other claims.
If you're one of the US-based victims of these breaches and are seeking some sort of retribution/compensation, you can take your chance against the company knowing that your case will go forward.
Verizon bought Yahoo's internet business in June.
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The plaintiffs amended their complaint after Yahoo last October revealed that the 2013 breach affected all 3 billion users, tripling its earlier estimate. Reuters reported that, last March, U.S. prosecutors charged four individuals in connection to one of the breaches - including two Russian intelligence agents and a Canadian citizen.
Judge Judy Koh just ruled that victims can sue Yahoo following the hacks, dismissing Verizon's request to dismiss these suits.
Yahoo allegedly knew its security was flawed well before the breaches but did little to improve it. Affected users named in the suit have claimed that those repeat incidents and the delayed disclosure forced them to spend additional time and funds to secure their accounts, as well as exposing them to identity theft.
In seeking a dismissal, Yahoo said it has always been the target of "relentless criminal attacks", and the plaintiffs' "20/20 hindsight" did not cast doubt on its "unending" efforts to thwart "constantly evolving security threats".