A federal judge in San Jose, California rejected Yahoo’s proposed data breach settlement offer faulting Yahoo’s lack of transparency,

Yahoo’s proposed a $50 million payout, plus two years of free credit monitoring for about 200 million people in the United States and Israel was rebuffed by U.S. District Judge Lucy Koh, who said she couldn't declare the settlement “fundamentally fair, adequate and reasonable” because it did not say how much victims could expect to recover, according to court documents.

Koh also said the accord did not disclose the size of the settlement fund or the costs of the credit monitoring and that the proposed class may be too big because the number of “active” users that Yahoo disclosed privately to her was far lower.

In 2016 the massive data breach compromised the information of more than one billion Yahoo users affecting email addresses and other personal information marking the largest data breach in history. As of 2017. U. S. prosecutors have charged two Russian intelligence agents and two hackers in connection with one of the breaches in 2017.