active class actions

Ashley Madison Data Breach Class Action Settlement

In June of 2015, the website Ashley Madison released a press release that stated hackers had gained unlawful entrance into the company’s information systems network. The hackers retrieved personal information about Ashley Madison members and then released the stolen information to the public. Ashley Madison represents a website that allows married people to find partners outside of their marriages.

Eighteen plaintiffs joined together to file the Ashley Madison class action lawsuit. The large group of plaintiffs alleged Ashley Madison failed to create enough security measures to secure user personal identification information. Court documents reveal the defendants in the case include Ruby Corporation, Noel Biderman, and Avid Dating Life.

The plaintiffs also accuse Ashley Madison of creating fake profiles to lure unsuspecting married men and women to engage in online conversations. With the impression that they were communicating with real people, the Ashley Madison data breach class action lawsuit plaintiffs claim they were deceived into paying for a fraudulent service.

Both parties agreed to terms that Ashley Madison will create a settlement fund around $11 million. The money in the fund is expected to go primarily to the victims of the fraudulent activities. Settlement funds also will pay plaintiff incentive fees, as well as court costs and attorney fees. Ashley Madison must participate in an extensive audit that reviews the information security provided to website users. The company has to establish a new executive position called Chief Information Security Officer.

What You Need To Know

Court documents reveal the eligible class members in the Ashley Madison settlement “include all persons in the U.S. who used Ashley Madison on or before July 20, 2015. Within that group, those who may be entitled to receive monetary benefits include but aren’t limited to those whose personal information was exposed in the data breach, those who purchased either the Paid Delete or Full Delete option from Ashley Madison, those who suffered losses because of the data breach, and those who purchased credits and believe they used those credits to interact with engagers or bots on the website.” The potential payment for each eligible class member is up to $3,500. The class action settlement website breaks down the payment options for different qualifying class members.

The deadline to file a valid and timely claim is January 2, 2018. Class members should submit documentation with the claim form that proves Ashley Madison followed deceptive and fraudulent business practices. Ashley Madison Customer Data Security Breach Litigation, Case No. 4:15-MD-02669, in the U.S. District Court for the Eastern District of Missouri has the final hearing scheduled on November 20, 2017. The class action settlement website lists the attorneys who represent the class and defense counsels.

2018/01/02 19:32:24

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