Yahoo settles e-mail privacy class-action: $4M for lawyers, $0 for users

‘In late 2013, Yahoo was hit with six lawsuits over its practice of using automated scans of e-mail to produce targeted ads. The cases, which were consolidated in federal court, all argued that the privacy rights of non-Yahoo users, who “did not consent to Yahoo’s interception and scanning of their emails,” were being violated by a multi-billion dollar company.

Now, lawyers representing the plaintiffs are singing a different tune. Last week, they asked US District Judge Lucy Koh to accept a proposed settlement (PDF). Under the proposal, the massive class of non-Yahoo users won’t get any payment, but the class lawyers at Girard Gibbs and Kaplan Fox intend to ask for up to $4 million in fees. (The ultimate amount of fees will be up to the judge, but Yahoo has agreed not to oppose any fee request up to $4 million.)’

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