📺 Stream EntrepreneurTV for Free 📺

Ashley Madison Hit With Another Lawsuit Following Hack This comes in the wake of a class-action suit filed against its parent company Avid Life Media in Canada last week.

By Reuters

entrepreneur daily

This story originally appeared on Reuters

Shutterstock | Enhanced by Entrepreneur

Infidelity website Ashley Madison and its parent company have been sued in federal court in California by a man who claims that the companies failed to adequately protect clients' personal and financial information from theft, saying he suffered emotional distress.

The lawsuit, filed in U.S. District Court in Los Angeles by a man identified as John Doe, seeks class-action status.

The lawsuit accuses Ashley Madison and parent company Avid Life Media Inc, which is based in Toronto, of negligence and invasion of privacy, as well as causing emotional distress.

The lawsuit seeks unspecified damages.

The lawsuit follows a breach of the Ashley Madison website by a group called the Impact Team, which downloaded "highly sensitive personal, financial, and identifying information of the website's some 37 million users," the lawsuit said.

The hacker group threatened to release information if the site was not shut down, and in August, when the site had not been shut down, published "stolen personal information," the suit said.

The data, which was dumped online, included millions of email addresses for U.S. government officials, UK civil servants and high-level executives at European and North America corporations.

The lawsuit claims that the data breach could have been prevented if the company had taken "necessary and reasonable precautions to protect its users' information, by, for example, encrypting the data."

The lawsuit says that in addition to making "extremely personal and embarrassing information ... accessible to the public," the data breach made personal details such as addresses, phone numbers and credit card information available on the web.

Avid Life Media could not be reached immediately for a comment outside regular business hours.

Avid Life Media was sued in Canada last week in a class-action suit that seeks some $760 million in damages.

The case is filed in the U.S. District Court, Central District of California No. 15-cv-06405.

(Reporting by Rishika Sadam in Bangalore; Editing by Leslie Adler)

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Starting a Business

I've Co-founded Over 20 Firms — These Are the Five Critical Questions You Need to Ask to Evaluate Your Startup's Health

Have you checked your startup's pulse recently? If not, here are five questions to assess how your company is doing and which areas need more attention.

Business News

McDonald's Is Responding to Sky-High Fast Food Prices By Rolling Out a Much Cheaper Value Meal: Report

The news comes as the chain looks to redirect back to customer "affordability."

Starting a Business

Clinton Sparks Podcast: CEO of Complex Shares How Media, Culture Have Shifted in Recent Years

This podcast is a fun, entertaining and informative show that will teach you how to succeed and achieve your goals with practical advice and actionable steps given through compelling stories and conversations with Clinton and his guests.

Business News

Jack Dorsey Explains Bluesky Exit: 'Literally Repeating All the Mistakes We Made' at Twitter

Dorsey left the Bluesky board and deleted his account earlier this week.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.