LinkedIn has settled a class-action lawsuit filed shortly after the social network allowed over 6.5 million passwords to be exposed by Russian hackers in 2012. And apparently, LinkedIn feels as though its penalty should be about $1 per user.
Premium user, that is. Though the password breach affected all both types of users – both paid and unpaid – the class action settlement only applies to premium (paid) LinkedIn users.
The settlement, which was just recently approved, will set up a $1.25 million fund for affected users. LinkedIn's roughly 800,000 premium subscribers will have until May 2, 2015, to file their claim – each of which has a $50 maximum.
But as the New York Times points out, after lawyers take around one-third of that pool, the available funds work out to about $1 per 800,000 premium subscriber.
Of course, those who file a claim will most certainly receive more than $1. There's no way that all 800,000 LinkedIn premium subscribers are going to take the time to submit a claim form. But if you were a premium member at any time between March 15, 2006 to June 7, 2012 – you can go file one right now.
“Following the dismissal of every other claim associated with this lawsuit, LinkedIn has agreed to this settlement to avoid the distraction and expense of ongoing litigation," said LinkedIn in a statement.
But the company "continues to deny that it committed, or threatened, or attempted to commit any wrongful act or violation of law or duty alleged in the Action," according to the settlement.
In June of 2012, 6.5 million LinkedIn passwords were leaked. Barely two weeks after the breach, a senior associate at a real estate firm filed a complaint claiming that LinkedIn failed to adequately protect users with “basic industry standard encryption methods.”
Image via LinkedIn