UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ...

Case 5:16-md-02752-LHK Document 330-3 Filed 10/22/18 Page 1 of 35

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA

SAN JOSE DIVISION

IN RE: YAHOO! INC. CUSTOMER DATA SECURITY BREACH LITIGATION

Case No. 5:16-MD-02752-lhk The Honorable Lucy H. Koh

SETTLEMENT AGREEMENT AND RELEASE

Case 5:16-md-02752-LHK Document 330-3 Filed 10/22/18 Page 2 of 35

Table of Contents Settlement Agreement and Release ..............................................................................................1 Recitals ............................................................................................................................................1

1. Definitions ...............................................................................................................................3 2. Business Practice Changes ....................................................................................................10 3. Settlement Fund .....................................................................................................................10 4. Credit Services ......................................................................................................................13 5. Alternative Compensation .....................................................................................................15 6. Out-of-Pocket Costs ..............................................................................................................16 7. Residue of Settlement Fund ..................................................................................................18 8. Preliminary Approval ............................................................................................................19 9. Class Notice, Opt-Outs, and Objections ................................................................................19 10. Duties of Settlement Administrator .....................................................................................20 11. Service Awards ...................................................................................................................22 12. Attorneys' Fees, Costs, and Expenses .................................................................................23 13. Mutual Releases ..................................................................................................................24 14. Effective Date and Termination ..........................................................................................24 15. No Admission of Wrongdoing ............................................................................................26 16. Representation .....................................................................................................................27 17. Notice ...................................................................................................................................27 18. Miscellaneous Provisions ....................................................................................................28

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Exhibit List List of Actions.....................................................................................................................Exhibit 1 Business Practice Commitments ........................................................................................Exhibit 2 Preliminary Approval Order ..............................................................................................Exhibit 3 Notice Plan .........................................................................................................................Exhibit 4 Notice .................................................................................................................................Exhibit 5

Long Form Notice ................................................................................................ Exhibit 5a Short Form Notice ................................................................................................Exhibit 5b Publication ........................................................................................................... Exhibit 5c Out-of-Pocket Costs Claim Form ......................................................................................Exhibit 6 Credit Services or Alternative Compensation Claim Form ...............................................Exhibit 7 Paid User Claim Form .......................................................................................................Exhibit 8 Small Business User Claim Form ......................................................................................Exhibit 9 Israeli Claim Form ............................................................................................................Exhibit 10 Final Approval Order and Judgment ................................................................................Exhibit 11

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SETTLEMENT AGREEMENT AND RELEASE

This Settlement Agreement and Release ("Settlement Agreement" or "Agreement") is made as of 2018, by and between, as hereinafter defined, (a) Settlement Class Representatives-- John Bell, Michelle Bouras, Jana Brabcova, Reid Bracken, Paul Dugas, Hashmatullah Essar, Hilary Gamache, Mali Granot, Kimberly Heines, Andrew J. Mortensen, Brian Neff, Jared Pastor, Brendan Quinn, Deana Ridolfo, Matthew Ridolfo, and Yaniv Rivlin--on behalf of themselves and the Settlement Class, and (b) Defendants (defined below) (collectively, the "Parties"). This Agreement fully and finally compromises and settles any and all claims that are, were, or could have been asserted in the litigation styled In re: Yahoo! Inc. Customer Data Breach Security Litigation, Case No. 16-md-02752-LHK (N.D. Cal.) and Yahoo! Inc. Private Information Disclosure Cases, JCCP No. 4895.

RECITALS

WHEREAS, in September 2016, November 2016, December 2016, and October 2017, it was announced that Yahoo! Inc. had been the target of criminal cyberattacks on its computer systems in which the attackers gained unauthorized access to the personal information of Yahoo Member users and various other individuals (the "Data Breaches").

WHEREAS, as a result of the Data Breaches in September 2016, multiple putative class action lawsuits were filed against Defendants in federal courts across the country, alleging that Defendants failed to properly protect personal information in accordance with their duties, had inadequate data security, and delayed notifying potentially impacted individuals of the breaches.

WHEREAS, on December 7, 2016, the Judicial Panel on Multidistrict Litigation ("MDL Panel") transferred several putative class action lawsuits to the Honorable Lucy H. Koh in the United States District Court for the Northern District of California (the "MDL Court") for coordinated pretrial proceedings.

WHEREAS, additional lawsuits against one or more Defendants also were transferred to, filed in, or otherwise assigned to the Court and included in coordinated pretrial proceedings as part of In re: Yahoo! Inc. Customer Data Breach Security Litigation, Case No. 16-md-02752LHK (N.D. Cal.) ("MDL Case").

WHEREAS, the MDL Court appointed John Yanchunis of Morgan & Morgan Complex Litigation Group as Lead Counsel, and Ariana Tadler of Milberg Tadler Phillips Grossman LLP, Stuart Davidson of Robins Geller Rudman & Dowd LLP, Gayle Blatt of Casey Gerry Schenk Francavilla Blatt & Penfield LLP, and Karen Hanson Riebel of Lockridge Grindal Nauen PLLP, to the Plaintiffs' Executive Counsel representing Plaintiffs and putative class Members in the MDL Case ("MDL Class Counsel").

WHEREAS, MDL Class Counsel filed a Consolidated Class Action Complaint ("CAC") in the MDL Case, Defendants moved to dismiss the CAC, and the MDL Court granted in part and denied in part the motion by Order dated August 30, 2017.

WHEREAS, MDL Class Counsel filed a First Amended Consolidated Class Action Complaint ("FAC") in the MDL Case, Defendants moved to dismiss the FAC, and the MDL Court granted in part and denied in part the motion by Order dated March 9, 2018.

WHEREAS, Class Counsel have expended significant time investigating the facts

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relating to the Data Breaches with the assistance of experts in cybersecurity and identity theft, analyzed the evidence adduced during pretrial discovery, researched the applicable law with respect to Plaintiffs' claims against Defendants and the potential defenses thereto, including the motions described above, reviewing 9.05 million pages of documents in the MDL Case, taking seven percipient witness and 30(b)(6) depositions, defending eight named Plaintiff depositions, and producing four experts for deposition in the MDL Case.

WHEREAS, on July 13, 2018, MDL Class Counsel filed a motion to certify certain classes pursuant to Federal Rule of Civil Procedure 23, and Defendants filed an opposition to that motion and three Daubert motions.

WHEREAS, after announcement of the Data Breach, multiple putative class action lawsuits were also filed against Yahoo and other Defendants in California state court alleging that Defendants failed to properly protect personal information in accordance with their duties, had inadequate data security, and delayed notifying potentially impacted individuals of the breaches.

WHEREAS, on September 22, 2016, the first action regarding the Data Breaches was filed in California state court (Dela Cruz v. Yahoo!, Inc., Orange County Superior Court, Case No. 30-2016-00877210).

WHEREAS, on October 7, 2016, the plaintiff in the Action styled Pastor v. Yahoo! Inc., Superior Court of California, County of Orange, Case No. 30-2016-00877593 filed with the Judicial Council a Petition to Coordinate the following cases involving alleged public disclosure of plaintiffs' private information: (1) Quinn v. Yahoo! Inc., Superior Court of California, County of Los Angeles, Case No. BC635382; (2) Gamache v. Yahoo! Inc., Superior Court of California, County of Marin, Case No. CIV1603582; (3) Pastor v. Yahoo! Inc., Superior Court of California, County of Orange, Case No. 30-2016-00877593; (4) Bouras v. Yahoo! Inc., Superior Court of California, County of Orange, Case No. 30-2016-00877883; (5) Ruiz, et al. v. Yahoo! Inc., Superior Court of California, County of Orange, Case No. 30-2016-00878170; (6) Dela Cruz v. Yahoo! Inc., Superior Court of California, County of Orange, Case No. 30-2016-00877210; and (7) Brabcova v. Yahoo! Inc., Superior Court of California, County of Orange, Case No. 30-201600893069.

WHEREAS, on February 28, 2017, the Judicial Council authorized the Presiding Judge of the Orange County Superior Court to assign the coordinated actions of Yahoo! Inc. Private Information Disclosure Cases, JCCP No. 4895 ("JCCP Case") to a coordination trial judge pursuant to California Code of Civil Procedure section 404.3 and California Rule of Court 3.540. (the "JCCP Court") for coordinated pretrial proceedings.

WHEREAS, on March 14, 2017, the Presiding Judge of the Orange County Superior Court assigned the Honorable Thierry Patrick Colaw (Ret.) to be the coordination trial judge.

WHEREAS, the JCCP Court appointed Daniel S. Robinson of Robinson Calcagnie, Inc. and Brian D. Chase of Bisnar | Chase LLP as Co-Lead Counsel, along with Eric Grover of Keller Grover LLP, Jeremiah Frei-Pearson of Finkelstein, Blankinship, Frei-Pearson & Garber LLP, Neil Fineman of Fineman Poliner LLP, Robert Samini of Samini Scheinberg PC, Nathan Smith of Brown Neri Smith & Khan LLP, and Brian Kabateck of Kabateck Brown Kellner LLP to the Plaintiffs' Steering Committee, to represent Plaintiffs and putative class Members in the JCCP Case ("JCCP Class Counsel").

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