Remember the Ashley Madison data breach scandal? Well, the website’s parent company may have secured an $11.2 million online class action settlement.

The Infamous Ashley Madison Online Data Breach Scandal

In 2015, hackers unsheathed 36 million accounts on the infamous extra-marital dating site AshleyMadison.com. The fallout was epic — and, at times, tragic; two people took their own lives, divorce proceedings skyrocketed, and the company’s CEO resigned amidst the maelstrom.

Scandal Leads To Online Class Action Lawsuit

The scandal also spawned several legal battles.

Exposed users questioned the platform’s security safeguards. Clients who paid extra for account deletion services took particular umbrage. And beyond the breach, Ashley Madison patrons decried the website’s use of fake profiles to lure clients. Ultimately, the company broke enough proper protocols and client promises to catch an online class action.

A U.S. District Court in Missouri will decide whether or not to affirm the settlement offer — which, by the way, doesn’t include a fault admission on Ashley Madison’s part. If accepted, affected parties can claim up to $3,500, depending on how the breach impacted their lives. For example, people targeted by identity thieves because of the incident will get more than someone who was embarrassed but suffered no material harm as a direct result of the hack. Moreover, amounts will depend on the number of claims submitted.

This class action is not the first legal hurdle AshleyMadison.com has cleared in the wake of the scandal. Thirteen state attorneys general and the Federal Trade Commission also lodged formal complaints against the company.

Connect With An Online Privacy Lawyer

Was your business the target of a data hack? If so, and you’re unsure of subsequent legal obligations, get in touch. Most states require that companies inform affected parties in a particular way. Our team has helped numerous parties navigate the aftermath of a hack. We’ll assist with state and federal notification requirements, plus provide guidance on how to put the incident behind you and continue to grow.

Article Sources

Davis, W. (2017, July 17). Ashley Madison Settles Class-Action Over Data Breach. Retrieved September 03, 2017, from https://www.mediapost.com/publications/article/304409/ashley-madison-settles-class-action-over-data-brea.html