Published: Mon, July 17, 2017
Business | By Max Garcia

Ashley Madison proposes $11.2 million payout for users exposed in data breach

Ashley Madison proposes $11.2 million payout for users exposed in data breach

The owner of Ashley Madison, Ruby Life Inc., will pay $11.2 million to settle a class-action lawsuit brought on behalf of 37 million users of the adultery website after a 2015 data breach exposed information on millions of users.

Ashley Madison's parent company has reached a proposed $11.2 million settlement agreement with lawyers representing victims of the cheating site's 2015 data breach.

Sensitive information, including photographs and "sexual fantasies", was leaked.

Ashley Madison was a dating website for people who already had a partner but were looking to have an affair. It led to several reports of blackmails and even suicide.

Lawsuits against the company alleged that Ashley Madison used inadequate data security practices and failed to protect user information, a serious issue especially concerning the nature of the service.

While the company denies any wrongdoing, it has agreed to compensate USA residents that used the website on or before 20 July 2015, who "submit valid claims for alleged losses resulting from the data breach and alleged misrepresentations".

The firm also changed its name from Avid Life Media to Ruby in the same period in a bid to appeal to a more feminine audience.

According to Friday's settlement, users with valid claims can recoup up to $3,500 depending on how well they can document their losses attributable to the breach.

"The parties have agreed to the proposed settlement in order to avoid the uncertainty, expense, and inconvenience associated with continued litigation", said Ruby Life in a statement.

The company says that since July 2015, it has implemented "numerous remedial measures" to boost the security of customers' data.

Like this: