Ashley Madison offers to pay $11.2 million to hacking victims

Jay Anderson
July 17, 2017

Late last Friday, affairs and dating website Ashley Madison's parent company Ruby Life, formerly known as Avid Dating Life, said that an agreement has been reached between the firm and class action lawsuits brought against Ruby for the cybersecurity incident.

It has tightened security since discovering the breach in July 2015. While the company was quick to say there was no proof the leaked was accurate - and there were several cases where users obviously employed fake names - the fallout was massive.

However, in July 2015 the site was breached, leading to the exposure of almost 36 million users' personal information including names, addresses, telephone numbers, credit or debit card numbers, email addresses, dates of birth, date of creation of accounts, last account update, account type, nickname, gender, ethnicity, sexual preferences, and relationship status.

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.

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The settlement will see "contribute a total of $11.2 million United States dollars to a settlement fund, which will provide, among other things, payments to settlement class members who submit valid claims for alleged losses resulting from the data breach and alleged misrepresentations as described further in the proposed settlement agreement".

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.

Ruby agreed to pay $US1.6m last December to settle an inquiry by USA government trade officials into poor data security and deceptive practices, but did not admit liability.

Users who submit "valid claims for alleged losses resulting from the data breach and alleged misrepresentations" can receive up to $3,500 from the settlement fund. The total amount will also depend on how many of Ashley Madison's users submit claims.

Other reports by BadHub

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