T-Mobile agrees to 0 million settlement over its massive data breach in 2021

T-Mobile agrees to $350 million settlement over its massive data breach in 2021

T-Mobile has agreed to pay $500 million to settle a class action lawsuit stemming from the 2021 hack that allegedly exposed the data of some 76.6 million US citizens. Under the proposed agreement signed Friday, which you can read in full below, T-Mobile will pay $350 million into a settlement fund that will go to attorneys, fees and, of course, those making claims. It will also be committed to spending $150 million on “data security and related technology” in 2022 and 2023, on top of what it had already budgeted.

In August, the company announced that its systems had been breached after reports that social security numbers, names, addresses and driver’s license information of over 100 million of its customers were being offered for sale. While the number turned out to be slightly inflated, T-Mobile’s number of people affected continued to rise as the month progressed. T-Mobile’s CEO called this security breach — the fifth in four years — “humiliating.”

The proposed settlement agreement still has to be approved by a judge, but if it does, T-Mobile has 10 days to put money into the fund to cover the cost of notifying beneficiaries. According to the settlement, this includes “the approximately 76.6 million US citizens identified by T-Mobile whose information was compromised in the data breach,” with some caveats for some airline employees and people close to the judges. who led the case. For the sake of full disclosurethis could very well mean that I am entitled to claim compensation since I was a T-Mobile customer when the hack took place.

The Settlement Agreement does not include estimates of how much each claimant can expect, although it is difficult to estimate such things until it is clear how many people will be making claims.

The lawsuit, which T-Mobile hopes to settle here, accused the company of failing to protect the data of its past, current and potential customers, failing to properly notify potentially data subjects and having “inadequate data security” overall. T-Mobile denies these allegations in the agreement and states that the settlement does not constitute an admission of guilt. In a filing with the Securities and Exchange Commission, the airline says it has “the right to terminate the agreement under certain conditions” set out in the proposed agreement, but says it expects to have to pay out the claims.

Outside of this lawsuit, there have been other and similar responses to T-Mobile’s data breach. The FCC has proposed new rules for such attacks aimed at improving how a company communicates with people about their information.

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