Ashley Madison Offers £8.5m To Data Breach Victims

Paterniano Del Favero
Luglio 17, 2017

The owner of Ashley Madison has offered an $11 million settlement to users who had their personal information stolen, two years after the hacking took place. The money will go to affected users, with up to $3,500 paid to those with multiple accounts and proper documentation.

The data breach cost Ruby which is a private Company more than a quarter of its revenue, and prompted the Company to spend millions of dollars to improve security and user privacy.

"Valid claims" is important, because the announcement notes that whoever broke into Ashley Madison had lots of time to rummage around inside and create fake records.

The information was extensive, including names, phones, addresses, and credit card 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. It even caused a small number of reported suicides, including that of a priest in Louisiana.

The lawsuits allege that Ruby (formerly Avid Life Media) didn't implement adequate security practices.

"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", the company said.

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

According to Friday's settlement, users with valid claims can recoup up to $3500 depending on how well they can document their losses attributable to the breach. The website suggests that Ashley Madison has more than 52 million members.

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