The Ashley Madison hack involved a group known as 'the Impact Team' releasing approximately 40 MB of sensitive data, including credit card information and internal documents, from Avid Life Media, the parent company. They threatened to expose sensitive information of all 37 million users unless the site was shut down, leading to multiple data dumps and a $578 million class-action lawsuit against the company for privacy violations. Investigations into related suicide incidents and scams targeting users also emerged following the data leaks.