Ashley Madison will pay $11.2 million to users for data breach

Ashley Madison will pay $11.2 million to users for data breach

The owner of the Ashley Madison adultery website said on Friday it has agreed to pay $11.2 million to settle USA litigation over a 2015 data breach that exposed personal details of millions of users.

Formerly known as Avid Life Media, owner Ruby Corp denied any wrongdoing, but agreed to pay $11.2m to compensate any losses of United States residents who used the website on or before 20 July, 2015 and can submit valid claims for losses incurred as a result of the data breach.

Ashley Madison is to pay a sum of $11.2 million (roughly £8 million) to their clients who were victims of a major hacking attack.

While the company denies any wrongdoing, it has agreed to compensate USA residents that used the website on or before 20 July 2015, who "submit valid claims for alleged losses resulting from the data breach and alleged misrepresentations".

Ruby Life, the company behind the site, faces legal action from people who say the data breach led to financial loss and identity theft.

Despite this, the consolidated class-action complaints alleged that Avid Life (now Ruby) misrepresented that they had taken reasonable steps to ensure AshleyMadison.com was secure.

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The data included names, address, birth dates and sexual interests.

Under Friday's deal, users with valid claims can regain up to $US3500. Ashley Madison has long courted attention with its claim to be the Internet's leading facilitator of extramarital liaisons, boasting that "thousands of cheating wives and cheating husbands sign up every day looking for an affair".

As for the full delete service, Ashley Madison sold customers the promise of removing 100% of their "digital trail" for a payment of $19.

In a statement on the settlement, Ruby notes that just because someone's name was associated with the site through the breach, doesn't mean they were actually a user of the site.

The group of hackers, called Impact Team, said they stole the information of 37 million members of Ashley Madison.

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