Ashley Madison's $11.2 Million Offer

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

The owner of the Ashley Madison adultery website said on Friday it will pay $11.2 million (roughly Rs. 72 crores) to settle United States litigation brought on behalf of roughly 37 million users whose personal details were exposed in a July 2015 data breach. It led to some members of Ashley Madison, which used the slogan "Life is short". The settlement will also be used to pay those who had their data leaked after they paid a fee to have their Ashley Madison account deleted.

"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 said.

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.

But the breach cost privately held Ruby more than a quarter of its revenue, and prompted the Toronto-based company to spend millions of dollars to improve security and user privacy. In a separate blog, Errata Security Chief Executive Rob Graham said the information released included details such as users' height, weight and Global Positioning System coordinates.

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The breach quickly became a lesson in the perils of trusting an online site with sensitive information because the dumped data made it easy to identify many members of the infidelity-focused website.

Ashley Madison now bills itself as "the original extramarital affairs site".

The lawsuits allege that Ruby (formerly Avid Life Media) didn't implement adequate security practices.

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