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Creators of Ashley Madison in $11.2 Million Settlement for Data Breach


According to court papers, the creator of website Ashley Madison has reached a projected settlement in a class-action suit related to a breach of data exposing huge amounts of stolen information from the dating site for those who are looking for extramarital affairs.


Though the company did not admit to any illegal activities, it's pledged to pay up to $3,500 to each of the victims of the hack including Josh Duggar, owner of TLC. It is not sufficient to buy back a good name but at least it will cover some sessions of therapy of the couple.


It has been a difficult couple of years for Ashley Madison, which was already compelled to pay $1.66 Mn to settle a suit brought by FTC facing allegation that most of its advertised randy married women were fembots. Esquire.com posted on July 15th, 2017, stating that hopefully for them, bizarre rebranding campaign is going well.


Ruby Corp, previously known as the Avid Life Media Inc, has denied the wrongdoing while agreeing to initial class-action settlement that requires the approval of a federal judge in the St. Louis. Ashley Madison has marketed itself as helping hand for aiding people, mainly men, cheat on their spouses, besides it was known for its slogan "Life is short. Have an affair."


Data breach cost the private company named Ruby, over a quarter of their revenue, thus prompting it to spend millions of dollars for improving its security as well as privacy of users. Ruby has agreed of paying $1.66 Mn last Dec. for settling the probe by U.S. Federal Trade Commission and many states into careless data security along with misleading practices, also having not admitting the liability.


According to a settlement on Friday, users having valid claims can recover around $3,500 depending on the way they documented their losses because of this breach.


Former federal judge Layn Phillips, who has mediated the settlement, says in one court filing that the accord offered "a valuable recovery for the class in the face of many obstacles," including the preference of Ruby that victims adjudicate their claims.


Court papers reveal that lawyers for users of Ashley Madison can receive around one-third of $11.2 Mn payout for covering the legal fees.

» SPAMfighter News - 7/19/2017

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