Ruby Corp, the owner of Ashley Madison, has reached a tentative settlement with plaintiffs in class action lawsuits that were filed in 2015 following a breach of the website in the same year.
The lawsuits allege that Ruby (formerly Avid Life Media) didn’t implement adequate security practices. The settlement that has been tentatively agreed on amounts to $11.2 million.
The settlement first has to be approved by a court and, if it is, the amount will be used to pay customers who sustained losses due to the data breach. The settlement will also be used to pay those who had their data leaked after they paid a fee to have their Ashley Madison account deleted.
Despite reaching a settlement Ruby still 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,” the firm said in a statement.
This marks the second settlement Ruby has reached in under a year. The firm agreed to pay $1.66 million to settle a Federal Trade Commission probe.
The firm also changed its name from Avid Life Media to Ruby in the same period in a bid to appeal to a more feminine audience. The firm also sought to re-brand Ashley Madison last year with a slew of new adverts telling potential users to “find your moment”.
The lesson here then is life is short, secure your data.