Yahoo Facing a Severe Data Breach Class Action Lawsuit

A severe data breach class action lawsuit against Yahoo is here. A small business owner in Texas claims that hackers have acquired his identity and data for his websites and online advertising. This all happened during the two large data breaches that Yahoo disclosed in 2015.

Brian Neff, the plaintiff alleges that Yahoo and its subsidiary, Aabaco Small Business LLC, breached its contract. Allegedly, they negligently let hackers access information on a billion Yahoo account holders during those two breaches.

The plaintiff filed the lawsuit in California federal court. It claims that Yahoo did not protect the personal information Brian Neff provided to the company in order to set up and pay for an account. The theft of that information has resulted in several fraudulent charges on his bank accounts. Also, someone has opened an unauthorized card in his name.

Yahoo announced in 2015 that in late 2014, data from 500 million accounts were stolen. At that time, Yahoo data breach was the largest one the company ever disclosed. However, in December it revealed that in 2013 hackers had stolen account information from one billion users.

While Yahoo says that the data taken was just email addresses and passwords, the things might be way serious, according to the plaintiff. At this stage, it is not possible to say whether Yahoo’s descriptions are true or not.

The complaint says that Neff is rather skeptical of Yahoo’s statements. Over three years passed before Yahoo decided to disclose the 2013 data breach. This is not trustworthy at all.

Neff alleges that he was paying Yahoo thousands of dollars for services that resulted in a security breach. In addition, he has undergone identity theft due to either or both of the hacks. Neff’s Capital One credit card and Chase debit card which were linked to Yahoo were hacked. As a result, he has incurred fraudulent charges on these cards. And according to him, Yahoo was the only company he had given that information to.

The data breach class action lawsuit also states that someone has opened an unauthorized credit card account at Credit One Bank in the plaintiff’s name. And someone has made additional charges to that account.

Data breach class action lawsuit members

Overall, the suit includes claims for the following:

  • Breach of contract
  • Breach of implied contract
  • Negligence
  • Fraudulent and negligent inducement
  • Violations of California’s Unfair Competition Law

The plaintiff seeks to represent a nationwide Class. It should include Yahoo and Aabaco small business customers whose data hackers disclosed during the 2013 or 2014 data breaches.

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