T-Mobile Settles to Pay $350M to Customers in Data Breach
NEW YORK — T- Mobile has agreed to pay $350 million to customers affected by a class action lawsuit filed after the company disclosed last August that personal data like social security numbers had been stolen in a cyberattack.
In a Securities and Exchange Commission filing on Friday, the mobile phone company said the funds would pay for claims by class members, the legal fees of plaintiffs’ counsel and the costs of administering the settlement. In addition, it stated it planned to spend $150m next year and $203 million in 2023 for data security enhancements.
T-Mobile claimed that there is no admittance of responsibility, wrongdoing, or liability by the defendants in the settlement.
According to the company, it anticipates that the court will approve the terms of settlement by December 2022.
The breach affected nearly 80 million Americans. In addition to Social Security numbers, other information breached included names and information from driver’s licenses or other identification.
T-Mobile, based in Bellevue, Washington, became one of the country’s largest cellphone service carriers, along with AT&T and Verizon, after acquiring rival Sprint in 2020. The merger resulted in 102.1 millions U.S. subscribers.
T-Mobile stated that it anticipates to report a pre-tax total of approximately $400 million for the second quarter.
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