Ashley Madison's owner offers $11.2M compensation to users over 2015 hack

The  parent  company of the Ashley Madison adultery website has reached a proposed settlement of $11.2 million in a class-action lawsuit after the dating site experienced a data breach which roughly affected 37 million users, which also included some celebrities.

Ashley Madison is a dating website that is dedicated to consenting adults who are despirately in search for a partner. The slogan of this website is “Life is short, have an affair.” The hackers leaked users' email address, names, home addresses, credit card details and sexual fantasies.

The TMZ obtained documents which proves that the users with valid claims want compensation up to $3,500. It was claimed that amount would be donated to charity, but not. However, the proposed  settlement, requires the approval of a federal court in the city of St Louis.

A former federal judge who mediated the settlement, Layn Phillips said in the court filing accord that “a valuable recovery for the class in the face of many obstacles, including the company's preference that victims independently negotiate their claims."

He also made it clear that the victims have to directly get in touch with the company and ask for the settlement.

This is not the first time that company is paying such a huge amount, last year, Ruby Corp, formerly known as Avid Life Media Inc, had to pay $1.66 million for the settle of a probe by the Federal Trade Commission and several states into "data security and deceptive practices."  The hack affected the company in losing more than it's quarter revenue. And after the hack, the company had to spend millions of dollar on cyber security.










The Ashley Madison adultery website will pay $11.2 million to settle a class-action lawsuit filed after the dating site was hacked in July 2015, exposing data of millions of users, its owner said Friday. The lawsuit was brought on behalf of roughly 37 million users, which also included some celebrities.

Ashley Madison is a website dedicated to facilitating affairs between consenting adults, allowing a safe place for those who discretely search for a partner. Its slogan is “Life is short, have an affair.” The data theft leaked users' email address, names, home addresses, credit card details and sexual fantasies.

According to the documents, obtained by TMZ, users with valid claims can claim compensation up to $3,500. The amount that will not be claimed would be donated to charity. The proposed preliminary settlement, however, requires the approval of a federal court in the city of St Louis.

Layn Phillips, a former federal judge who mediated the settlement, said in the accord offered “a valuable recovery for the class in the face of many obstacles,” including the company's preference that victims independently negotiate their claims. He made it clear the victims have to directly get in touch with the company and ask for the settlement.

Last year, Ruby Corp, formerly known as Avid Life Media Inc, agreed to pay $1.66 million to settle a probe by the Federal Trade Commission and several states into "data security and deceptive practices." The massive hack resulted in Ruby losing more than a quarter of its revenue. Following the hack, the owner spent millions of dollars on cyber security.

Some of the big names that were exposed in the data leak included former “19 Kids and Counting” star Josh Duggar, YouTube celebrity Sam Radar, Florida State Attorney Jeff Ashton, Louisiana GOP official Jason DorĂ©, among others.
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