Ashley Madison offer $11 million to settle hacking claims

Owner of Ashley Madison offers to pay $14m compensation for data breach

Owner of Ashley Madison offers to pay $14m compensation for data breach

A couple years ago, Ashley Madison, an online dating site that is marketed to people who are in relationships, experienced a data breach, that would eventually result in 32 million users having their information exposed. The money will go to affected users, with up to $3,500 paid to those with multiple accounts and proper documentation.

The data breach had cost the company at least a quarter of its revenue, as well as the millions of dollars it had to spend on boosting its privacy and security.

As Ashley Madison's Canadian owners, named Avid Life, did not close the website, the hackers made good on that threat - releasing 100 GB worth of sensitive data of those who used the website onto the dark web. The lawsuits, alleging inadequate data security practices and misrepresentations regarding Ashley Madison, have been consolidated in a multi-district litigation pending in the United States District Court for the Eastern District of Missouri.

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. As a result, users say they were unable to protect themselves, suffering financially loss and other harm.

It may also be the case that previous users entitled to compensation simply want to lay the issue to rest and will not claim. Customers submitting a claim that relates to the full delete option could receive up to $500 under the settlement.

In a statement released Friday, Ruby said that a proposed settlement had been reached resolving a number of lawsuits related to the breach. Meaning that even if a person's name did appear in the data dump, they might not have been an Ashley Madison member, apparently.

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