Business networking giant LinkedIn had to pay $1.25m (£810,000) to settle a legal claim filed against it following the hack of a million of passwords.
In June 2012, about 6.5 million passwords were stolen and were posted to a website hosted in Russia.
The paid users of LinkedIn services that are charged some amount to make use of certain services issued a legal action against the business networking website, making claims that data was not being protected correctly.
The paid American users will share the cash settlement.
A website has been set up by the company itself to handle all the claims, so that users can file to get their share of claim money. The users that paid to make use of the website between 15 March 2006 and 7 June 2012 are eligible for the claim. The maximum amount each person can claim is $50.
Users have until 2 May this year to file their claim.
The users who alleged that LinkedIn had placed their personal information at risk by not taking standard measures to protect passwords have taken legal actions against the company.
However on the website, LinkedIn has straightway denied the claims, saying it had not done anything wrong and also said the cash settlement was the best measure taken to fix the legal claims and would “avoid the distraction and expense of ongoing litigation”.
The Center for Democracy and Technology, the World Privacy Forum and the CyLab Usable Privacy and Security Laboratory at Carnegie Mellon University will be having the rest of the unclaimed money, LinkedIn quoted as saying.