The company blamed a rogue employee, who has since been terminated. It’s still facing a class action over the matter in California. “What transpired the past two weeks is a case of an employee acting on his own and without authorization to access our community through our company’s resources,” ESEA co-founder Craig Levine told WIRED back in May.
The settlement was announced today by the New Jersey Attorney General, which says that ESEA will pay $325,000 of the fine upfront, and will only be hit with the rest of the penalty if it’s caught misbehaving over the next decade.
In a press release, the Attorney General’s office called the software a “botnet” that could monitor customers even when they weren’t using the ESEA software.