Ashley Madison parent settles website users' data breach lawsuit

Ruby Corp and Plaintiffs Reach Proposed Settlement of Class Action Lawsuit Regarding Ashley Madison Data Breach

Note: Alas, this class action suit is only available to USA citizens. The deal (PDF) earmarks up to one-third, or about $3.7 million, for attorneys' fees and costs.

While the above incidents are quite tragic, it appears that problems for Ashley Madison aren't quite over.

It's been nearly two years since extramarital affair website Ashley Madison was hacked and had its members' details exposed online. The firm agreed to pay $1.66 million to settle a Federal Trade Commission probe. In the settlement, Ashley Madison's parent company 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 firm said in a statement. Account credentials were not verified for accuracy during this time frame and accounts may have been created using other individuals' information. Class members are set to receive up to $3500 based on their documented losses, once a federal judge approves the settlement. It will pay for, among other things, "payments to settlement class members who submit valid claims for alleged losses resulting from the data breach and alleged misrepresentations as described further in the proposed settlement agreement". 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".

They allege Ashley Madison misled consumers about its security measures and had inadequate safeguards in place.

The lawsuits, consolidated in the United States District Court for the Eastern District of Missouri, will be dropped should the courts agree to the settlement.

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