August 28, 2015 –
The controversial CEO of Avid Life Media, Noel Biderman, has resigned his position due to fallout surrounding the Ashley Madison hack. More than a billion dollars in lawsuits have already been filed against Avid Life Media. This comes after a hacker group calling itself “Impact Team” released private data of Ashley Madison users and private emails of Biderman. Ashley Madison is a Website that promotes infidelity and cheating.
Since the hack, Ashley Madison has been put under the microscope with many people questioning whether the company added fake female profiles to its site and whether the company honored its promises to users who paid to have all their data “erased” from Ashley Madison servers.
Biderman appears to have always embraced his “moral villain” role. On his bio on Avid Life Media’s Website, it says, “You may know Noel Biderman, founder and CEO of AshleyMadison.com, as ‘the most hated man on the Internet’ or ‘The King of Infidelity,’ but at Avid Life Media he’s simply the man in charge.”
Avid Life Media released a statement today about Biderman’s resignation. The statement reads:
Biderman appears to have always embraced his moral villain role. Click To Tweet
“Effective today, Noel Biderman, in mutual agreement with the company, is stepping down as Chief Executive Officer of Avid Life Media Inc. (ALM) and is no longer with the company. Until the appointment of a new CEO, the company will be led by the existing senior management team.
This change is in the best interest of the company and allows us to continue to provide support to our members and dedicated employees. We are steadfast in our commitment to our customer base.
We are actively adjusting to the attack on our business and members’ privacy by criminals. We will continue to provide access to our unique platforms for our worldwide members.
We are actively cooperating with international law enforcement in an effort to bring those responsible for the theft of proprietary member and business information to justice.”
Avid Life Media may never recover from the Ashley Madison hack, especially with all the litigation the company faces in the months ahead. Particularly troublesome to the company’s legal efforts will be the following three things:
1. Whether the company failed to delete private information from people who paid to have it deleted. When a person tried to delete their account, they were given an optional $19 fee to have all their private information deleted from their servers. Apparently those who paid the fee still had their information on the servers that was released .
2. Whether the company hired people to create thousands of fake female profiles. At least one former employee says her job was to constantly create fake female profiles.
3. Whether the company lied about how many female users it had. Data released in the hack differs from what Ashley Madison was saying publicly about the number of female users.
Those three items could be perceived as a pattern of deceit and cost Avid Life Media big in court cases and punitive damages. Plus the reputation of Ashley Madison has been greatly harmed, likely beyond repair.