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Ashley Madison Data Breach Victims May Receive up to $3,500

The company will shell out $11.2M to settle the breach

   

The Ashley Madison data breach will cost the adultery website’s parent company $11.2 million.

Ashley Madison
Source: Flickr

Ruby Corp — previously known as Avid Life Media Inc — was hit with a lawsuit over the 2015 data breach that exposed the personal information of roughly 37 million Ashley Madison users due to a security breach caused by a vulnerability in the website’s design.

The company denies any wrongdoing, and it is shelling out the amount to settle the suit, which could net victims up to $3,500 a head, depending on how well they document their losses related to the breach. The amount could include legal fees, which could include up to a third of the $11.2 million.

Ashley Madison helped people cheat on their spouses with the slogan, “Life is short. Have an affair.” Ruby Corp agreed to pay the U.S. Federal Trade Commission $1.6 million to settle a probe.

The charges came from 13 states, including New York, Alaska, Tennessee, as well as the District of Columbia. “The global settlement requires AshleyMadison.com to implement a range of more robust data security practices that will better protect its users’ personal information from criminal hackers,” the FTC said back in December 2016.

Layn Phillips, the former federal judge who mediated the settlement, said that the settlement marks “a valuable recovery for the class in the face of many obstacles.


Article printed from InvestorPlace Media, http://investorplace.com/2017/07/ashley-madison-data-breach/.

©2017 InvestorPlace Media, LLC