Jonathan Stempel reports:
The owner of the Ashley Madison adultery website said on Friday it will pay $11.2 million to settle U.S. litigation brought on behalf of roughly 37 million users whose personal details were exposed in a July 2015 data breach.
Ruby Corp, formerly known as Avid Life Media Inc, denied wrongdoing in agreeing to the preliminary class-action settlement, which requires approval by a federal judge in St. Louis.
Read more on Reuters. Ruby Corp issued the following press release:
Ruby Corp. and Ruby Life Inc. (ruby), and a proposed class of plaintiffs, co-led by Dowd & Dowd, P.C., The Driscoll Firm, P.C., and Heninger Garrison Davis, LLC, have reached a proposed settlement agreement resolving the class action lawsuits that were filed beginning July 2015 following a data breach of ruby’s computer network and subsequent release of certain personal information of customers of Ashley Madison, an online dating website owned and operated by Ruby Life Inc. (formerly Avid Dating Life Inc.) The lawsuits, alleging inadequate data security practices and misrepresentations regarding Ashley Madison, have been consolidated in a multi-district litigation pending in the United States District Court for the Eastern District of Missouri.
If the proposed settlement agreement is approved by the Court, ruby will contribute a total of $11.2 million USD to a settlement fund, which will provide, among other things, payments to settlement class members who submit valid claims for alleged losses resulting from the data breach and alleged misrepresentations as described further in the proposed settlement agreement. Since July 2015, ruby also has implemented numerous remedial measures to enhance the security of its customers’ data.
While ruby denies any wrongdoing, the parties have agreed to the proposed settlement in order to avoid the uncertainty, expense, and inconvenience associated with continued litigation, and believe that the proposed settlement agreement is in the best interest of ruby and its customers. In 2015, hackers gained access to ruby’s computer networks and published certain personal information contained in Ashley Madison accounts. Account credentials were not verified for accuracy during this timeframe and accounts may have been created using other individuals’ information. 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.
The plaintiffs’ consolidated class action complaint alleges that the defendants misrepresented that they had taken reasonable steps to ensure AshleyMadison.com was secure and that the data breach resulted in the public release of certain personal information contained in AshleyMadison.com accounts and included account information of some users who had paid a fee to delete their information from the AshleyMadison.com website.
Further information regarding the settlement and the claims process will be made available if and when the settlement agreement is approved by the Court.
SOURCE ruby Life Inc.