Ashley Madison CEO steps down in wake of hacking
NEW YORK—The CEO of the company that runs adultery website Ashley Madison is stepping down in the wake of the massive breach of the company’s computer systems and outing of millions of its members.
The abrupt departure of Noel Biderman, which came without the appointment of an interim replacement, could be another sign that the website’s days may be numbered, experts say.
“Unless they can immediately assure the public that their information is protected, then their business is over,” says Lawrence Kellogg, a partner with the law firm Levine Kellogg Lehman Schneider & Grossman LLP, who specializes in class action lawsuits.
“The only reason for an adulterer to join the service is to keep their information private. Absent that, they don’t have a business.”
Kellogg says that if the lawsuits from Ashley Madison members keep piling up, Avid Life Media Inc., Ashley Madison’s parent company, may ultimately end up filing for bankruptcy protection.
And while those who sue the company may have a tough time proving their claims, costs related to the court fights could drain the company dry, he says.
In its statement, Avid Life says Biderman’s departure is effective immediately and was a mutual decision. The company will be led by its senior management until a replacement is named.
“This change is in the best interest of the company and allows us to continue to provide support to our members and dedicated employees,” Avid Life’s statement reads. “We are steadfast in our commitment to our customer base.”
Biderman didn’t immediately return an email sent to his work account seeking comment.
Biderman, who touted himself as “the king of infidelity,” made millions off the philosophy that cheating is a natural part of married life. The site charges a fee each time a member sends a potential lover a message.
Biderman has written books espousing his views on adultery, including one published in 2011 titled: “Cheaters Prosper—How Infidelity Will Save The Modern Marriage.” At the same time, the married father of two has claimed to be a devoted husband and that his wife of 12 years would be heartbroken if he ever broke his vows to her.