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Federal Judge: Yahoo Breach Victims Can Sue



A federal judge in California has largely rejected a motion by Verizon to dismiss a class-action lawsuit brought by victims of three Yahoo data breaches. The breaches appear to have compromised every Yahoo user's personal details at least once.

In the defendant's favor, however, Judge Lucy Koh in her Friday ruling also denied several claims by the plaintiffs that Verizon had challenged, including deceit by concealment, negligence and breach of contract.

Verizon closed its acquisition of Yahoo last June for $4.48 billion. Under the terms of the deal, Yahoo agreed to shoulder half of the costs related to government investigations and third-party litigation over its breaches. Yahoo also bears full liability for any shareholder lawsuits and faces a probe by the U.S. Securities and Exchange Commission.

The search giant reportedly did not carry cyber insurance.


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