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Customers to Receive $350M Settlement Following Massive Data Breach at T-Mobile

Iesha July 25, 2022 News Leave a comment

As a result of a data breach disclosed last year, T-Mobile has agreed to pay $350 million to settle multiple class-action lawsuits.

On Friday, T-mobile also agreed to spend an additional $150 million on cybersecurity through the end of 2023 as part of the proposed settlement. Court documents detailing the proposed agreement were submitted to the Western District of Missouri US District Court.

According to a court filing included with the settlement deal, the proposed class will consist of more than 76 million US citizens affected by the incident. During its initial statements surrounding the breach, T-Mobile believed a hacker had obtained information on roughly 53 million current, former, and potential customers.

In August 2021, the company started looking into the breach after Vice uncovered allegations on the dark web that allegedly offered T-Mobile customer data for sale.

If T-Mobile’s $350 million is approved, it will be used to pay out to class members and cover legal and administrative costs.

“Customers are first in everything we do, and protecting their information is a top priority,” T-Mobile said. “Like every company, we are not immune to these criminal attacks. Our efforts to guard against them continue, and over the past year, we have doubled down on our extensive cybersecurity program.”

To enhance its cybersecurity posture, the company said it had hired Accenture, Mandiant, and KPMG, as well as established a “cybersecurity transformation office” under the direction of CEO Mike Sievert.

T-Mobile stated in a Securities and Exchange Commission filing that it anticipates the settlement to be authorized in December at the earliest but warned that appeals or other procedures could cause delays.