Ashley Madison $11.2 Million Settlement: Users Eligible for up to $3000


The owner of the Ashley Madison adultery website said on Friday it will pay $11.2 million (roughly Rs. 72 crores) to settle U.S. litigation brought on behalf of roughly 37 million users whose personal details were exposed in a July 2015 data breach.

Hackers broke into the company's systems in July 2015 and then posted the information online a month later after the company didn't comply with their demands to shut down Ashley Madison.

Ashley Madison has tentatively offered a total of $11.2 million in compensation to users for a data breach which led to the exposure of 36 million accounts. In 2015, TrustedSec Chief Executive Dave Kennedy said the information dump included full names, passwords, street addresses, credit card information and "an extensive amount of internal data".

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The settlement first has to be approved by a court and, if it is, the amount will be used to pay customers who sustained losses due to the data breach.

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

"While Ruby 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 company says. It also had to pay $1.66m to settle charges from the Federal Trade Commission (FTC) and 13 states, who alleged that the company misled its users about its privacy policy and did not do enough to protect their information.