T-Mobile to Pay $350M to Customers Affected by Data Breach
T-Mobile has announced the terms of a settlement in a consolidated class action lawsuit over the data breach it suffered last year. The company will pay $350 million to affected customers, with part of it going to lawyers. It will also spend $150 million “for data security and related technology.”
The breach happened early in 2021, and T-Mobile customer data were put up for sale on various criminal forums. Estimates of how many people were affected varied, with T-Mobile claiming less than a million had accounts and PINs fully exposed. But some estimates show that up to 100 million people had some data compromised.
The SEC filing doesn’t appear to have separate terms for those affected differently by the hack. The proposed settlement provides compensation to approximately 76.6 million U.S. residents identified by T-Mobile whose information was compromised in the data breach. The exact amount each customer will receive in compensation is not known yet, but if everyone gets a payment, i would probably be just about $4. But some estimates show that class members could receive cash payments of up to $25, and up to $100 for California residents. Separately, some people could receive as much as $25,000 to cover losses they suffered as a direct result of the breach.
Related: See All Settlement Rebates Here
Whatever the amount, payments will likely be sent out in 2023. The $350 million payout has only received preliminary approval. And, as is common in these big lawsuits, lawyers take a huge chunk of the settlement.
In its statement about the proposed settlement, T-Mobile didn’t mention the $350 million it will pay to customers. Instead, the company listed efforts they have taken to double down on its cybersecurity efforts.
Settlement Class Members must check the Settlement website (not live yet) regularly for updates and further details.