The owner of the Ashley Madison infidelity website, which was hacked in July 2015, has offered a settlement to the people suing the company.
The owner of the Ashley Madison adultery website said on Friday it has agreed to pay $11.2 million to settle US litigation over a 2015 data breach that exposed personal details of millions of users.
“Hackers had stolen 37 million records of customers, which apparently included “all the customers” secret sexual fantasies and matching credit card transactions”. Tens of thousands of government and military email addresses showed up on the list of Ashley Madison users.
In 2015, the site – which facilitates extramarital affairs – came under attack by a group called “The Impact Team” which threatened to release the data they had collected unless the website was shut down. It led to several reports of blackmails and even suicide.
Many users have since sued the company for providing inadequate levels of data security and Ruby Life has been attempting to strike a deal with those involved.
According to Ruby, compensation will be made available to “settlement class members who submit valid claims for alleged losses resulting from the data breach and alleged misrepresentations”.
The release suggested that Ruby “denies any wrongdoing”, but states that the parties have agreed to the proposed settlement in order to avoid uncertainty, expense and inconvenience associated with continued litigation. The company paid $1.6 million last December to settle an FTC probe into its lax security and deceptive practices – millions of “female” accounts on the site were actually bots operated by Ashley Madison. It once purported to have about 39 million members.