LITTLE ROCK — Arkansas will receive a share of a settlement between multiple states, the Federal Trade Commission and a website that helps married people have affairs, Arkansas Attorney General Leslie Rutledge said Wednesday.
Ruby Corp., which owns the AshleyMadison.com website, agreed to the settlement to resolve allegations that it deceived users, created fake profiles of women to lure men and had inadequate security. The allegations grew out of an investigation into a 2015 hack of the website.
The company agreed to make an immediate payment of $1.66 million split between the states and the FTC. Arkansas will receive $52,830 of the settlement, Rutledge said in a news release.
The remaining $17.5 million is suspended based upon Ruby Corp.’s inability to pay a further amount, which is demonstrated through financial disclosure documents.
Ruby Corp. also agreed not to engage in certain deceptive practices, not to create fake profiles and to implement a stronger data security program.
The settlement, which was led by the State of Vermont, included Alaska, Arkansas, Hawaii, Louisiana, Maryland, Mississippi, North Dakota, Nebraska, New York, Oregon, Rhode Island, Tennessee and the District of Columbia.
“While I do not condone the activities of those who joined the Ashley Madison website, it is my job as attorney general to take action when Arkansans’ data is breached,” Rutledge said. “The false actions taken by this corporation were wrong and exposed countless members to potential fraud.”
“Today is a pivotal day for our members and for Ashley Madison,” Ruby Corp. CEO Rob Segal said in a statement. “Today’s settlement closes an important chapter on the company’s past and reinforces our commitment to operating with integrity and to building a new future for our members, our team and our company.”