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T-Mobile reaches $500 million settlement in massive 2021 data breach


T-Mobile has agreed to a settlement totaling $500 million in a class action lawsuit brought by customers after the company disclosed in August that sensitive data was breached in a cyberattack.

In a filing late Friday, the mobile phone giant said it would pay $350 million to settle customer claims and spend $150 million over the next few years to bolster its cybersecurity protection and technologies.

The breach affected 76.6 million people in the United States, according to the company. It exposed highly sensitive data, including customers’ first and last names, social security numbers and driver’s license information.

It was unclear how much individual T-Mobile customers would receive from the settlement, although the proposed agreement, filed in U.S. District Court for the Western District of Missouri, states individual payments cannot exceed $2,500. .

At the time of the breach, T-Mobile said the compromised files included checking accounts as well as records of people who had applied for credit with the company.

In Friday’s filing, T-Mobile’s attorneys said the settlement agreement does not mean the company admits any wrongdoing. The breach was one of many to occur in the technology, banking and retail sectors in recent years.

A representative for T-Mobile could not immediately be reached for comment on the settlement.

nytimes

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