Ashley Madison offers users caught in data breach $11 million in compensation

Ashley MadisonĀ got caught with its pants down and now to make up for it the extramarital affairs website agreed to fork over a pretty penny

Ashley MadisonĀ got caught with its pants down and now to make up for it the extramarital affairs website agreed to fork over a pretty penny

Ashley Madison's parent company has agreed to pay $11.2 million to settle a class-action stemming from a disastrous data breach that exposed the names, email addresses and usernames of 36 million customers. The money will go to affected users, with up to $3,500 paid to those with multiple accounts and proper documentation.

The owner of the Ashley Madison infidelity website, which was hacked in July 2015, has offered a settlement to the people suing the company.

Ashley Madison used the slogan "Life is short".

Last December, Ruby agreed to pay $1.66 million to settle a probe by the U.S. Federal Trade Commission and several states into lax data security and deceptive practices, also without admitting liability.

In addition, the complainants say that the service "misrepresented that they had taken reasonable steps to ensure AshleyMadison.com was secure", and users were involved in the breach despite paying a fee to have their information permanently deleted from the website.

"If the proposed settlement agreement is approved by the Court, ruby will contribute a total of $11.2 million Dollars to a settlement fund, which will provide, 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", it said. 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".

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. It claims that the account credentials were not verified for accuracy and some may have been created using other individuals' information.

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