Yahoo Loses Bid to Dismiss Data Breach Lawsuit

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Yahoo (and Verizon, its parent/Engadget owner) currently has no choice but to face the majority of the claims in a lawsuit that was filed the United States over the multiple data breaches of the internet giant. Lucy Koh, California Judge (who became famous for the Apple-versus-Samsung case) has denied the bid of Verizon to dismiss the numerous claims in the suit, including negligence and breach of contract. Judge Koh said that the claims of the plaintiffs demonstrated that they would have “behaved differently” if they had known about the email security woes of Yahoo. She also said that the attempts of Yahoo to limit liability were “unconscionable” given how much the internet giant knew about its problems regarding security and how little it did.

Previously, the judge had shot down attempts by Verizon and Yahoo to dismiss unfair competition claims. In its bid to take down most of the claims, Yahoo had maintained that the lawsuit was just based on “20/20 hindsight” and did not change that the firm had been continuously battling threats on security.

The said ruling could put Verizon and Yahoo on the hook for a tremendous sum if the lawsuit becomes successful. It eventually became clear that all of the 3 billion users of Yahoo circa 2013 were affected by the first huge breach, and that is not including the people who were affected by the other two breaches between then and 2016. Only a portion of the said users are American. However, that could still result in a costly payout.