Ashley Madison to pay huge sum in compensation to data hack victims

Ashley Madison website

Carl Court | Getty Images Ashley Madison website

In 2015, Ashley Madison, adult dating site created to facilitate discreet, extramarital affairs, reported that its user databases had been leaked, revealing the details of up to 37 million users.

The site is known for encouraging infidelity and targeting people seeking affairs, so the public exposure of confidential users data obviously caused quite a stir when it was revealed by hackers in July 2015.

The parent company of Ashley Madison.com agreed Friday to a settlement of $11.2 million for the website's 2015 data breach that exposed data belonging to millions of its customers. Now the Company is set to fork up millions to U.S. nationals who were among the 37 million United States of America users who were affected.

Some of the fund will be used to compensate those with a "valid claim".

Avid Life Media and Avid Dating Life have rebranded as Ruby Corp. and Ruby Life, respectively.

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The company denies any wrongdoing, and it is shelling out the amount to settle the suit, which could net victims up to $3,500 a head, depending on how well they document their losses related to the breach.

"The parties have agreed to the proposed settlement in order to avoid the uncertainty, expense, and inconvenience associated with continued litigation", said Ruby Life in a statement. At the time of the hack, even the personal information of past users who had paid the $19 required to delete their account and scrub their information from the website was exposed.

"Therefore, Ruby wishes to clarify that merely because a person's name or other information appears to have been released in the data breach does not mean that person actually was a member of Ashley Madison".

What's more, the deal will also provide a dollar-for-dollar refund of up to $500 to members who submit a valid claim form proving they spent money to chat with so-called "engagers".

Ashley Madison is still online, but now promises its users better security.

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