T-Mobile Settles Hacking Lawsuit

Telecommunications giant T-Mobile announced it is set to pay $350 million to settle a data breach lawsuit that was filed after the company hacked 76 million individuals.

According to the settlement agreement, T-Mobile will pay $350 million to a settlement fund that will be used to compensate lawyers and the individuals who filed the lawsuit among the 76.6 million “current, former, and prospective customers” of the company who were affected by the data breach.

T-Mobile will have 10 days to deposit money into the fund to pay the costs of alerting those who are entitled to claim if the proposed settlement deal is approved by the judge.

The 2021 breach was acknowledged and apologized for by T-Mobile’s CEO Mike Sievert, who confirmed that the hacker utilized “specialized” tools and infrastructure knowledge to access the company’s testing environment.

“To say we are disappointed and frustrated that this happened is an understatement,” said Sievert.

The information that the hacker sold varied depending on the victim, but it was reported that it included each person’s name, birthdate, and social security number.

Additionally, T-Mobile confirmed that it would invest $150 million this year and in 2023 to strengthen its technologies and data protection.

After acquiring rival Sprint in 2020, Washington-based T-Mobile joined AT&T and Verizon as one of the United States’ largest providers of mobile services. Following the merger, it reported having a total of 102.1 million clients.

T-Mobile said that it anticipates judicial approval of the settlement terms as early as December 2022.

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