Before the hack put Ashley Madison under worldwide scrutiny, the company was dogged by allegations that it resorted to fake profiles of women or so-called bots to lure unsuspecting male customers.
The parent company of hacked extramarital dating site Ashley Madison has agreed to pay an $11.2m (£8.57m) settlement to US-based users of the site, ending a two-year court battle. An additional $500,000 has been set aside to administer the remaining $7 million earmarked for Ashley Madison members.
Some of the fund will be used to compensate those with a "valid claim".
Reuters reported that the litigation was brought "on behalf of roughly 37 million users whose personal details were exposed in a July 2015 data breach".
The company denies any wrongdoing, and it is shelling out the amount to settle the suit, which could net victims up to $3,500 a head, depending on how well they document their losses related to the breach. It claims that the account credentials were not verified for accuracy and some may have been created using other individuals' information. Members can seek up to $500 in refunds for spending money to chat with "women" who were actually robots of fake female profiles.
"If the proposed settlement agreement is approved by the court, ruby will contribute a total of $11.2 million Dollars 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", the company said in a statement, according to Fox News.
While the above incidents are quite tragic, it appears that problems for Ashley Madison aren't quite over.
The lawsuits, consolidated in the United States District Court for the Eastern District of Missouri, will be dropped should the courts agree to the settlement.