In August of 2021, T-Mobile suffered a massive data breach that compromised the personal data of around 76.6 million people. These breaches contained sensitive information like names, addresses, dates of birth, Social Security numbers, and driver’s license information.
To address these claims, T-Mobile settled the class-action lawsuit for $350 million in response to the incident. T-Mobile agreed to settle the case for $350 million, making it the second-largest data breach agreement in the US, although neither side admitted wrongdoing.
What Happened in the T-Mobile Data Breach?
The hack happened in August when T-Mobile declared that hackers stole the particular data of over 76 million customers. The hacker, John Binns, also said T-Mobile’s lax security allowed him to easily abscond with millions of records. He tried to sell the pilfered data on the dark web for $270,000.
The incident created significant implications for T-Mobile’s data security and resulted in lawsuits and subsequent settlements.
Settlement Details
- Gross Settlement Amount: $350 million
- Filing Deadline: January 23, 2023 (Now Closed)
- Expected Payout Date: April 2025
- Eligible Claimants: Those who file valid claims by the deadline
Compensation:
- Up to $25,000 for verified financial losses
- Flat payment of $25 (up to $100 for CA residents w/o documentation)
- Two years of complimentary identity protection services
An update posted on July 29, 2024, notes that the United States Court of Appeals for the Eighth Circuit issued the following opinion affirming and reversing the district court opinion in part for further proceedings consistent with the opinion.
Who is eligible for T-Mobile Data Breach Compensation?
Claimants will receive varying compensation based on the actions they took to protect their financial accounts following the breach.
Here’s how the payoffs are arranged:
- Clients who documented out-of-pocket losses could be reimbursed up to $25,000.
- General claimants — customers affected by the breach who did not submit proof of their losses—will receive up to $25.
- Residents of California who were affected by the breach could be eligible for up to $100 because of California-specific privacy laws.
Reimbursement was set at a dollar-per-hour rate of $25 for time spent combating fraud and securing financial accounts. Claimants have been required to provide reasonable documentation substantiating their losses by January 23, 2023.
Payout Amounts
- Documented Losses: Claimants who provided qualifying documentation of financial losses directly tied to the breach could be paid up to $25,000. Such losses included the cost of credit monitoring services, identity theft protection, or expenses incurred by unauthorized charges.
- Undocumented Claims: People with no documented losses could apply for a flat payment. Residents outside California might receive $25, and California residents could receive $100 because of the state’s stricter privacy regulations.
T-Mobile was the victim of a massive cyberattack in August 2021, resulting in one of the largest data breaches in the history of U.S. telecom, with the sensitive information of more than 76 million users exposed. The settlements are designed to address both the people affected by the earlier abuses as well as to put strong safeguards in place to prevent future occurrences.
FAQs.
1. Where can I get additional information about the settlement?
Go to the official settlement website at www.t-mobilesettlement.com or contact the settlement administrator directly.
2. How do I get my settlement payment?
Payments will be sent by the method chosen when filing your claim — either by direct deposit or a check. Be sure your contact information is up to date with the settlement administrator.
3. When Should T-Mobile Settlement Checks Arrive?
According to the status report filed by T-Mobile, all actions in court are done; payments will be disbursed way back in April 2025. People in the class who submitted valid claims were sent their total amount due as of Oct. 22, 2024.