Yahoo Users May Struggle To Show Damages From Data Breach

Law360, New York (August 2, 2012, 10:23 PM EDT) -- A Yahoo Inc. user’s class action launched Tuesday in California marks the first legal action stemming from the recent breach of more than 450,000 usernames and passwords, but attorneys say the allegations are unlikely to gain any traction unless the plaintiffs can show that Yahoo deceived them about the strength of its security standards.

Yahoo failed to employ “basic security measures” to protect login credentials of users on its open publishing platform Yahoo Contributor Network, which were allegedly stored in an unencrypted format when a group...
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