On August 28, 2015, Avid Life Media (ALM), then Ashley Madison’s parent company, announced that CEO Noel Biderman was stepping down by mutual agreement and was no longer with the company. ALM said its senior management would lead until a new CEO was appointed. The announcement came as stolen member and company data was being released; the company’s phrase “actively adjusting” described its response, not proof that its security measures were effective.
Why did the Ashley Madison CEO quit?
The announcement concerned Biderman’s role as CEO of Avid Life Media, not a separately identified CEO position at the Ashley Madison website. In its August 28 statement, ALM said Biderman was stepping down by mutual agreement and had left the company. It said the change was in the company’s best interest and that existing senior management would lead while it sought a replacement. Ars Technica reproduced the company’s statement.
ALM did not give a more specific reason for Biderman’s departure in that statement. The timing placed the leadership change amid the breach, but the announcement does not establish that Biderman personally caused the security failures later described by regulators.
What did the company mean by “adjusting to the breach”?
ALM said: “We are actively adjusting to the attack on our business and members’ privacy by criminals.” The statement also said it would continue to provide access to its platforms for worldwide members, remained committed to its customer base, and was cooperating with international law enforcement to pursue those responsible for the theft of member and business information. These were the company’s stated intentions, not an independent assessment of the quality or results of its response. Read the statement as reproduced by Ars Technica.
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What happened in the Ashley Madison breach?
The Federal Trade Commission’s later account said intruders accessed the companies’ networks several times between November 2014 and June 2015. The FTC identified July 12, 2015, as the date of a major breach on the network. In August, hackers published sensitive profile, account-security, and billing information. The FTC said the released material also included data retained from consumers who had paid for the site’s Full Delete service. The FTC’s December 2016 announcement describes the timeline and the information involved.
The FTC’s account described alleged shortcomings in access controls, employee training, vendor oversight, and monitoring. Those descriptions belong to the regulator’s account of the case; they should not be treated as proof that Biderman personally directed or caused each deficiency.
How many users’ information was exposed?
The FTC said the breach exposed information relating to 36 million users. That is the figure in the agency’s 2016 announcement; it describes records or information associated with users, not a verified count of individual people whose identities or account use have each been independently confirmed. A leaked record should not, by itself, be treated as proof about a particular person.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What followed the departure?
On December 14, 2016, the FTC announced a settlement requiring a comprehensive data-security program. The agency said the operators would pay a total of $1.6 million to settle FTC and state actions. That stated payment is the settlement figure; it should not be confused with other amounts discussed in the FTC release, including a partially suspended judgment. See the FTC’s settlement announcement for its terms.
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