Yahoo has agreed to pay $50m (£38.7m) in damages and provide two years of free credit-monitoring services to 200m people in settlement of a class action relating to a security breach affecting 3bn email accounts worldwide, Associated Press reports. The settlement covers around 1bn of the 3bn email accounts, held by roughly 200m people in the US and Israel.

The security breaches happened in 2013 and 2014, but were not disclosed by Yahoo until 2016, after it had agreed to be sold by Verizon for $4.83bn. That figure was subsequently cut by $350m to reflect the damage done to the brand by the breach. The deal is subject to final approval from US District Judge Lucy Koh of the Northern District of California at a hearing set to take place on 29 November.

The settlement costs will be split equally between Oath, the Verizon company that owns Yahoo, and Altaba, the holding company set up to hold what was left of Yahoo, including its Asian investments, after the sale. Altaba has already paid a $35m fine imposed by the Securities and Exchange Commission for Yahoo’s delay in disclosing the breach to investors.

Any eligible Yahoo account holder who suffered losses resulting from the security breach can claim for a portion of the $50m fund. These could include things such as identify theft or delayed tax refunds. Account holders will be recompensed at a rate of $25 per hour for time spent dealing with issues triggered by the security breach,. Those with documented losses can ask for up to 15 hours of lost time, or $375. Those who cant document losses can file claims seeking up to five hours, or $125, for their time spent dealing with the breach.