Ashley Madison to pay $11.2 million to data breach victims

ashley-madison-to-pay-11-2-million-to-data-breach-victimsAshley Madison is picking up the pieces after the data breach that literally exposed the information of millions of users. The parent company of the cheat-on-your-spouse website denies any wrongdoing, but agreed to settle the preliminary class-action lawsuit filed on behalf of 37 million users who had personal details. Ruby Corp has agreed to pay $11.2 million for the settlement, however, this amount is under approval by a federal judge in St. Louis.

The data breach cost Ruby Corp more than a quarter of its revenue. It spent a lot of money to promote security and privacy aiming to win over new users, and now it is settling the lawsuits caused due to the breach. In addition to $11.2 million it also has to pay people affected by the breach, while the company settled last year the FTC charges and 13 states for $1.6 million.

Those affected by the security breach can now claim up to $3,500, based on how they have documented their losses in this event. Since it’s a website encouraging cheating on one’s spouse, $3,500 might only cover a small fraction of that the some people lost.

The Ashley Madison adultery website owner on Friday said it will pay to settle the U.S. litigation that was brought to roughly 37 million users by exposing their personal details in the 2015 July data breach.

Ashley Madison marketed itself to help people, basically men, cheat on their spouses, and was renowned for its slogan “Life is short. Have an affair.”

According to Friday’s settlement, users can recoup with valid claims up to $3,500 depending on how they document their losses attributable to the breach.

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