Published: Thu, March 15, 2018
Culture&Arts | By Laurence Reese

Yahoo's ToS limitations of liabilities challenged in Cyberbreach of 3 billion users!

Yahoo's ToS limitations of liabilities challenged in Cyberbreach of 3 billion users!

Yahoo can't escape claims that it should pay punitive damages over data breaches that left information on 3 billion customers in hackers' hands.

Judge Koh previously dismissed an earlier attempt by Yahoo to have the lawsuit thrown out, after the company claimed that the hacks it suffered were the result of advanced tactics by attackers rather than a failure of the company's security protocols. However, Verizon found itself in the soup after Plaintiffs' amended the complaint once Yahoo accepted that all 3 billion user data on the service were affected severely.

A Judge has dismissed Verizon's efforts to bar Yahoo customers from being able to sue over the company's multiple, massive security breaches previous year.

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"The claims are baseless, and can't comment beyond that because of pending litigation", said Bob Varettoni, a spokesman for Verizon, which acquired the Internet firm past year, shaving $350 million off its value because of the breach. Later in the year, the company revealed it was hacked again - in 2013 - in a breach that saw one billion accounts targeted.

She also said the plaintiffs could try to show that liability limits in Yahoo's terms of service were "unconscionable", given the allegations that Yahoo knew its security was deficient but did little. However, some other claims were dismissed.

Yahoo reached an US$80 million settlement this month with investors over claims that executives concealed the data breaches to artificially inflate the price of the internet firm's shares.

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Since Yahoo's breaches affected virtually every user, the plaintiffs are seeking class certification.

Koh said customers may have "taken measures to protect themselves" against identity theft and fraud had they known about the breaches sooner.

One accused hacker, Karim Baratov, a Canadian born in Kazakhstan, pleaded guilty in November to aggravated identity theft and conspiracy charges.

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