Don't use the browser plugin "Store My Password" functionality and you're fine. They offer the feature as a tradeoff: lose some security in exchange for convenience. It's very plain and always has been that the master password is the "key to the kingdom" and the only place it should exist is in your head. Anywhere else and you've opened yourself up to attack of those secondary locations - your wallet, your home, your spouse, your browser, your phone, etc. Evaluate for yourself which of these you think is secure and which isn't.

LastPass is so much of a win for the average user that even with this feature enabled, you are still better off than using the same username/password for every website which is the norm. This thread will be full of people recommending alternatives and there will be solid choices. I will keep using and recommending LastPass.

Well that's bad timing but really, this sort of news is a good thing. No software is perfect and now they can improve upon these findings. Password Managers are still a very valid technology. Better then Firefox/Chromes integrated plain text login stores or using the same password everywhere.

Though, IMO, a password manager which uploads all your password onto a central location with thousands upon thousands of other peoples password is just a really damn stupid idea to begin with.. Even if it's encrypted or whatever.

Read some other comments. It is only if you check the store password option and lastpass has been very responsive in fixing the issues since they disclosed them privately.

Well on the bright side I think you can export your lastpass account to something better, like 1pass.