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LinkedIn Will Pay Premium Users A Whopping $1 For Leaking Their Passwords

LinkedIn Will Pay Premium Users A Whopping $1 For Leaking Their Passwords

by Brad MerrillFebruary 24, 2015

To settle a class-action lawsuit, LinkedIn has agreed to pay about $1 to each of the roughly 800,000 people who were premium users between March 2006 and June 2012.

The suit was brought forth by premium user Katie Szpyrka after 6.5 million hashed user passwords were published in June 2012. She claimed that LinkedIn was in violation of a number of California laws, in breach of implied contracts, and negligent.

LinkedIn agreed to pay $1.25 million into a fund, with lawyers getting about a third of that amount. After their cut and other expenses, LinkedIn Premium users will each get about a buck.

Yes, a whopping sum of $1 for not properly protecting your data. Huzzah.

Going forward, LinkedIn will hash and salt all user passwords—making it more difficult for hackers to decrypt any data they get their hands on—even though 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.”

About The Author
Brad Merrill
Brad Merrill is the founder and former editor of VentureBreak.