The web services provider has agreed to pay $50 million in damages to 200 million people whose email addresses and other personal information were stolen.
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Yahoo has also agreed to provide two years of credit-monitoring services to those victims.
The restitution agreement comes in response to a lawsuit seeking to hold Yahoo accountable for the security breaches, which happened in 2013 and 2014 but weren't made public until 2016.
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A federal judge must still approve the settlement. A hearing is scheduled for Nov. 29.
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If the agreement wins court approval, any eligible Yahoo account holder who suffered losses from the data breaches can submit a claim for a portion of the $50 million restitution fund.
Those losses can be for identity theft or other problems stemming from personal info stolen during the Yahoo breaches.