LinkedIn has agreed to pay $1.25 million to settle a lawsuit over a 2012 data breach incident in which hackers posted more than 6 million users’ passwords on the Internet. If the proposed settlement receives approval by the U.S. District Court for the Northern District of California, LinkedIn users who subscribed to premium services between March 15, 2006, and June 7, 2012, can claim up to $50 each. (Of course, the plaintiffs’ lawyers stand to receive over $400,000.) Any funds left over will be given to the Center for Democracy and Technology, the World Privacy Forum, and the a cybersecurity lab at Carnegie Mellon University. The settlement demonstrates that once plaintiffs can get past a motion to dismiss, the chances of a settlement go up enormously. And as the plaintiffs’ bar comes up with creative theories of how their clients were injured, the pressure on companies to settle will grow.