Schwartz v. Yahoo Inc.

Updated: September 23, 2016
Status: Ongoing Case
On September 23, 2016, Labaton Sucharow filed a class action against Yahoo! Inc. (Yahoo) concerning an unprecedented breach of the tech giant’s security affecting nearly 500 million users. 

The plaintiffs allege that Yahoo’s actions constituted a reckless disregard for the safety and security of Yahoo users’ personal information and assert that Yahoo should be responsible for damages caused to its users. Unlike many other recent data breaches, Yahoo has not offered users any assistance with identity theft protection, even though its users are now at a much higher risk of having their identities stolen and must pay out of their own pockets to protect themselves.

The case is Schwartz v. Yahoo Inc., 16-cv-05456 (N.D. Cal.).

In a statement released on September 22, 2016, Yahoo noted that a “recent investigation” confirmed that sensitive personal account information associated with at least 500 million user accounts “was stolen from the company’s network in late 2014 by what it believes is a state-sponsored attack.” The stolen information included users’ names, email addresses, telephone numbers, dates of birth, hashed passwords, and in some cases, encrypted or unencrypted security questions and answers. Reports indicate that this data breach was the largest from a single site in history.

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