Ashley Madison owner to pay up to $11.2M to settle U.S. class action lawsuits

The owner of adultery website AshleyMadison.com has agreed to pay $11.2 million US to settle class action lawsuits in the U.S. on behalf of people whose personal information was exposed in a high-profile cybersecurity breach in 2015.

Hackers stole information from 37 million of the website's users in 2015

Personal information on 37 million of the website's users was stolen and released by hackers in 2015. (ruby)

The owner of adultery website AshleyMadison.com has agreed to pay $11.2 million US (more than $14.2 million Canadian) to settle class action lawsuits in the U.S. launched on behalf of people whose personal information was exposed in a high-profile cybersecurity breach in 2015.

Toronto-based Ruby Corp. announced on Friday that it has reached a proposed settlement to end various class action suits that were launched against it in 2015, after personal information from 37 million of the site's users was stolen and released by hackers.

The breach ultimately brought about the sale of the company, and while the new owners insist the company's future looks bright, the scandal was a major hit to the site's business, costing it roughly a quarter of its revenue in addition to various fines and penalties.

Late last year, the company paid $1.6 million US to settle with the Federal Trade Commission as part of a probe into the company's security protocols at the time.

While Ruby denies any wrongdoing, the company said in a release that if the settlement is approved by a judge later this month, it will pay up to $3,500 US each to victims who can prove they were affected, to a maximum payout of $11.2 million.

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