Published: Tue, July 18, 2017
Research | By Jo Caldwell

Ashley Madison offers $11m settlement

Ashley Madison offers $11m settlement

"In 2015, hackers gained access to Ruby's computer networks and published certain personal information contained in Ashley Madison accounts".

When Ashley Madison did not comply, the data and information relating to over 37 million global users was dumped onto the internet.

The breach and the lawsuits highlight the site's poor security and deceptive business practices, which have also resulted in a $1.6 million settlement with the Federal Trade Commission and several states.

The parent company of a dating site marketed for adultery has agreed to an $11 million settlement for people who had their personal information exposed. The settlement requires approval by a federal judge. Although it might not sound like a lot, those with valid claims will be able to file for a maximum of $3,500, depending on what kind of losses they suffered because of the incident.

Layn Phillips, a former federal judge who mediated the settlement, said in a court filing that the accord offered "a valuable recovery for the class in the face of many obstacles", including Ruby's preference that victims arbitrate their claims. At the time of the hack, even the personal information of past users who had paid the $19 required to delete their account and scrub their information from the website was exposed.

"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", it added. Members can seek up to $500 in refunds for spending money to chat with "women" who were actually robots of fake female profiles.

They allege Ashley Madison misled consumers about its security measures and had inadequate safeguards in place.

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