Ashley Madison proposes $11.2 million payout for users exposed in data breach

Ashley Madison parent company will pay $11.2m settlement in US over massive 2015 data breach

The parent company of adultery website Ashley Madison has agreed to pay $11.2m (£8.55m) to settle a United States class-action lawsuit over the massive July 2015 data breach that saw the personal details, including credit card details, home addresses and email accounts of millions of users from across the globe, published online. The firm also sought to re-brand Ashley Madison previous year with a slew of new adverts telling potential users to "find your moment". Although it might not sound like a lot, those with valid claims will be able to file for a maximum of $3,500, depending on what kind of losses they suffered because of the incident. Avid Life Media and Avid Dating Life have rebranded as Ruby Corp. and Ruby Life, respectively.

In a statement, Ruby Life said: "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".

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When adultery web site Ashley Madison was hacked the details of tens of thousands of Australians, who had registered in the hope of snagging an affair were exposed. Class members are set to receive up to $3500 based on their documented losses, once a federal judge approves the settlement. Any remaining funds in the pool "will be divided equally amongst Settlement Class Members who submit a Valid Claim Form and Reasonable Documentation demonstrating that his or her Personal Information was released publicly as a result of the Data Breach".

The hackers said they attacked Ashley Madison because the company was tricking users into thinking they needed to pay $19 to "Full Delete" their profile - but never actually deleted the data after taking users' money. The owner of the site refused.

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