The owner of adultery site Ashley Madison has declared it will pay $US11.2 million ($14.3m) to settle U.S. court action brought on behalf of 37 million users whose private details were stolen by computer hackers two year ago.
The adult dating site, designed with extramarital affairs in mind, was the victim of a successful cyberattack in 2015.
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. An anonymous user filed a class-action lawsuit against the site's parent company, Avid Life Media, alleging that it had failed to take "necessary and reasonable precautions" to protect its user data.
However, the devil is in the details. Class members can recoup up to $3,500 based on their documented losses, according to the preliminary class-action settlement.
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If your information was included in the breach, you are not, therefore, automatically entitled to compensation.
"Valid claims" is important, because the announcement notes that whoever broke into Ashley Madison had lots of time to rummage around inside and create fake records.
The data breach cost Ruby which is a private Company more than a quarter of its revenue, and prompted the Company to spend millions of dollars to improve security and user privacy.
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