Yahoo Lottery Scam: Tech Giant Wins $610 Million Judgment

SAN FRANCISCO -- Yahoo has won a $610 million court judgment in a scam that tried to dupe people into believing they had won prizes in a lottery the Internet company was supposedly running.

U.S. District Judge Laura Taylor Swain in New York issued the default judgment Monday. Yahoo announced it Wednesday.

Yahoo filed the lawsuit three years ago, alleging that a group of Nigerian and Thai swindlers had concocted the hoax in an attempt to steal passwords and other sensitive personal data, including credit card information and Social Security numbers. The civil complaint alleged that nearly 11.7 million emails were sent from December 2006 to May 2009 promising a lottery prize.

Winning the case might not yield a windfall for Yahoo, however. Collecting judgments in such cases can be a frustrating and fruitless exercise because online swindlers are often difficult to find.

Yahoo said it wasn't motivated by money. "Our ultimate goal is to ensure that users continue to trust Yahoo as the leading U.S. email provider," said Christian Dowell, the company's legal director of globe brand protection.

Yahoo Inc. ended September with about $2.9 billion in cash. So actually receiving the $610 million would be a boon for the company while it struggles to revive its revenue growth.

Comments

[peacekitten]

09:43 PM on 12/08/2011

so yahoo gets the cash while those were scammed, and had their email accounts bombarded with these spurious emails, you know, the actual VICTIMS, get NOTHING?

typical of american "justice" for the little guy.

[MichaelMcKLA]

11:22 PM on 12/08/2011

Yahoo is the one whose (hopefully) "good name" was tarnished by this scam. It is Yahoo that filed the lawsuit. The victims apparently did not take legal action. However, those victims can certainly file their own lawsuits or class-action lawsuit. You are aware of that, right?

[Hard2kill]

06:01 PM on 12/08/2011

..and who are going to pay? I don't understand....

[ruan217]

04:10 PM on 12/08/2011

the report says the judgement is difficult to collect, and yet it states that the $610 million judgement would be a boom to Yahoo's cashflow !!!!
The quality of this report stinks. It makes no sense at all !!

[The Jesus]

06:21 PM on 12/08/2011

May be it's sarcasm.

[rrioa6027]

02:57 PM on 12/08/2011

NO NO the Nigerians are going to pay they just need yahoo to send them one million dollars first to start the payment process it all legit.

[buckobob48]

02:48 PM on 12/08/2011

I'm no lawyer, nor do I play one on TV, but I think Yahoo may have done this "first strike" against the scammers for a reason apart from the settlement. By sucessfully suing the swindlers Yahoo helped to establish that they had nothing to do with the scam and are not culpable for any damages against Yahoo.

[johnmeltorment]

01:23 PM on 12/08/2011

Tech giant wins $610 million judgement from "a group of Nigerian and Thai swindlers" - If the company thinks they can collect they are just as stupid as whoever fell for the scam in the first place.

[Ferrariqx]

01:36 PM on 12/08/2011

Honestly, the stupidity really rests with people like you who make absolutely stupid comments without reading the story. Yahoo clearly stated they're well aware they have little chance of collecting money. Yahoo went on to say that wasn't the point of the lawsuit either. If you read the story BEFORE you posted your asinine comment, then you wouldn't look so foolish.

NEXT!

[johnmeltorment]

02:33 PM on 12/08/2011

Okay thanks, genius.

[thisbe777]

02:14 PM on 12/08/2011

Dearest:

I am barrister for Nigerian and Thai peoples who wrongly attempted to get money from feckless Americans. After $610M judgment, my clients say they are ever so sorry and are ready to send the funds by Western Union.

Please to provide your banking information so restitution is made.

I.M. Krimnal

[anitaroosevelt]

09:07 PM on 12/08/2011

LOL.

[Chipper Jones]

12:41 PM on 12/08/2011

These scammers went after the same people in America who took mortages that were bad....a sucker born every minute here.

[sumvette]

01:46 PM on 12/08/2011

Two wholly different types of scam ... but scams nonetheless.

[rkeeeballs]

12:14 PM on 12/08/2011

When folks in other countries are bilking us for $$$ billions $$ in scams every year...We must go after them in more ways than one ...above all..freeze their countries assets for awards and make them go after their own !....reverse the problem $...or cut the aid we send that country $ by any awarded amount !...simple...I drink now....lol....congrat's to Yahoo !

[ranwolf1976]

01:47 PM on 12/08/2011

So, in a round about way, you're suggesting punishing people who might not have had anything to do with the scam?

[rkeeeballs]

02:28 PM on 12/08/2011

Read deeper my friend...Make the country of origin police their own...we certainly can't get at them..with holding aid $$ or freezing assets will get their attention..everytime !

[anitaroosevelt]

09:09 PM on 12/08/2011

I remember a few years ago running into Nigerians on just about every street corner in Paris and New York trying to sell trinkets and beads to tourists.

Now they're bilking people online out of $milllions ?

Talk about upward mobility.....

[basketpam]

11:57 AM on 12/08/2011

It still amazes me how many people STILL fall for this spam and hoaxes online still today after all the publicity you hear about them. And it seems no matter what you do, no matter HOW many security blockers you set up, you STILL get them. I have all sorts of security things in place to block spam, and attackers of various sorts and this "junk mail" STILL manages to get through. I get some every single day. It amazes me, it's just as bad as the post office. Actually, that's probably why the post office is struggling so badly, all the junk mail senders are now using the web instead of the post office. But people need to learn that unless they instigate the connection, ALL of this stuff is fake. I know some of them make it seem SO real, but if you check, it's not. I've learned that if it's a real company contacting you about something and you delete it, if it's real, they'll send another email, the fakes won't.

[charlie4562]

11:45 AM on 12/08/2011

Don't you just love those Nigerian Nigers?

[chris784100]

12:01 PM on 12/08/2011

They have been doing these types of scams for the last 15+ years. Anyone who lost money deserved it. Greed can be a hell of a thing. Everyone shoud know about Nigerian scams and if they dont then they have no business using a computer.

[kimhoulian]

01:47 PM on 12/08/2011

what exactly does Niger have to do with the Nigerian scam.... Niger is to the north and Nigeria to the south ..two separate nations

[NATE CALZADA]

11:41 AM on 12/08/2011

So I won't be collecting the 50 million US Dollar inheritance that some deceased person I never heard of left me? Aw shucks! Dammit Yahoo!

[MichaelMcKLA]

11:26 PM on 12/08/2011

Sad. You're out $50 mil. I'm out $60 mil.

:-(

[Risky Rich]

11:41 AM on 12/08/2011

if the were not motivated by the money, then hell. just give it to me

[pbr56]

11:43 AM on 12/08/2011

They will never collect any. These people disappeared.

[ogelnibor]

11:34 AM on 12/08/2011

Sounds like Yahoo's lawyers made the only money that will be seen in this suit. I'm sure the lawyers are the ones that pushed for Yahoo to follow through with it. Just like all these frivolous 'class action' suits that nobody but the lawyer firms make money on.

[dknowles60]

12:28 PM on 12/08/2011

great one

[gerbersmail]

01:33 PM on 12/08/2011

Isn't that the truth!

[sumvette]

01:51 PM on 12/08/2011

You hate nigerians? ALL of them are guilty? And someone overseas should hate ALL Americans for issuing faulty mortgages and dragging down the worldwide economy? How about thinking through your anger before posting?

[anitaroosevelt]

09:06 PM on 12/08/2011

I know several very good Nigerian immigrants here.

[joynerz]

02:49 PM on 12/08/2011

....and that's all I've got to say 'bout that.

[Jim NLN]

11:03 AM on 12/08/2011

Yahoo is in trouble. Everyone send me $10 as soon as you can.

[pbr56]

11:43 AM on 12/08/2011

careful, they might sue you.