T-Mobile settles for $350 million over 2021 data breach
After the incident in 2021, T-Mobile has agreed to pay $500 million to resolve a class action lawsuit brought by 76.6 million US citizens. T-Mobile has agreed to deposit $350 million into a settlement fund to cover legal costs, fees, and, of course, the claims of customers. This deal was signed on Friday and can be read in full below. In addition, it will have to spend an additional $150 million on “data security and related technology” between 2022 and 2023.
More than 100 million consumers’ personal information was reportedly available for sale in August after the corporation claimed that its systems had been compromised. T-estimate Mobile’s of the number of people affected by the outage continued to climb for the rest of the month, even if it turned out to be slightly exaggerated. T-Mobile CEO John Legere described this latest security compromise as “humbling,” the company’s sixth in four years.
Before T-Mobile can start paying out claims to those who are eligible, a judge must approve the proposed settlement deal. If authorised, T-Mobile will have 10 days to put money into the fund. “The approximately 76.6 million U.S. residents identified by T-Mobile whose information was compromised in the Data Breach” is covered by the settlement, with a few caveats for some of the carrier’s workers and people connected to the judges who presided over the case. As a T-Mobile customer at the time of the hack, I am disclosing this in case it means I am entitled for reimbursement.
However, it is difficult to anticipate how much each claimant can expect to get until it is known how many people will file claims.
It was alleged that T-Mobile had “inadequate data security,” and that it had failed to notify anyone who may have been affected or to properly protect the data of past, present, and future consumers. There is no admission of guilt in the settlement, according to T-Mobile, which denies these claims. However, the carrier notes in a filing with the Securities and Exchange Commission that it anticipates paying out claims even if it has the “right to terminate the agreement under certain conditions” stipulated in the proposed agreement
Since T-data Mobile’s leak and others like it, there have been additional responses. As a result of these attacks, the FCC has proposed new rules that try to enhance how companies communicate with their customers.