On January 9, the parties to a derivative suit against several former directors and officers of Yahoo! Inc., which was based on a series of data breaches in which an estimated three billion user accounts were compromised, reached a $29 million settlement. The settlement, which included approximately $11 million in attorney’s fees with the remaining $18 million going to the company, is reportedly the first of its kind – previous derivative suits had resulted in settlements that only required changes in corporate governance and relatively small fee awards. If this settlement signals the beginning of a new trend, executives whose companies experience a data breach could find themselves on the hook for a similarly sizable amount.
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