Ashley Madison Offers $11.2 Million in Data Breach Settlement
Ruby Life Inc., the owner and operator of the online adultery service Ashley Madison, has offered to pay $11.2 million to individuals affected by the 2015 data breach.
Ashley Madison was breached in July 2015 by hackers who had threatened to leak the personal details of the website’s customers unless its owners shut down the service.
In mid-August, the hackers leaked details associated with well over 30 million user accounts, including names, addresses, phone numbers, email addresses, dates of birth, users’ interests and their physical description, password hashes, and credit card transactions. A few days later, they also dumped internal company files and emails.
The incident caused problems for a lot of people and there have been several suicides possibly related to the leak of Ashley Madison user data. Individuals affected by the breach filed class actions alleging inadequate data security practices and misrepresentations regarding the dating service.
In December 2016, Ruby, formerly named Avid Dating Life, agreed to pay a $ 1.6 million penalty, to settle charges with the U.S. Federal Trade Commission (FTC) and state regulators for failing to protect confidential user information.
Ruby announced on Friday that it has also settled the customer lawsuits. If the settlement is approved by the court, the company will pay a total of $11.2 million to a fund that will be used to compensate customers who submitted valid claims for losses resulting from the 2015 data breach.
“While ruby denies any wrongdoing, the parties have agreed to the proposed settlement in order to avoid the uncertainty, expense, and inconvenience associated with continued litigation, and believe that the proposed settlement agreement is in the best interest of ruby and its customers,” Ruby stated.
Ruby also clarified that the identities of individuals who had signed up for Ashley Madison were not verified, allowing users to create accounts using other people’s information.
“Therefore, ruby wishes to clarify that merely because a person’s name or other information appears to have been released in the data breach does not mean that person actually was a member of Ashley Madison,” the company said.