Ashley Madison parent will pay $1.6M in data breach settlement
TORONTO | Toronto-based Ruby Corp., the parent company of the adultery dating site Ashley Madison, will pay $1.6 million in settlements following an investigation led by the U.S. Federal Trade Commission into a massive breach of the company’s computer systems and the outing of millions of its members. Hackers breached the company in July 2015 and then posted the information online a month later.
The website — its slogan was “Life is short. Have an affair” — was once purported to have about 39 million members.
New York state Attorney General Eric Schneiderman said Wednesday that reckless disregard for data security will not be tolerated. The settlement, according to Schneiderman’s office, is for $17.5 million but the remainder of the $17.5 million payment is suspended based on Ruby Corp.’s inability to pay.