T-Mobile to Pay $350 Million to Fund for Victims of 2021 Leak of Customer Data
T-Mobile admitted a security lapse in 2021 after personal information of over 50 million of its current, former and prospective customers was found for sale online.
Photo:
David Paul Morris/Bloomberg News
T-Mobile US Inc.
proposed paying a group of victims $350 million to settle a class-action lawsuit brought by victims of a 2021 hack of sensitive customer information.
The cellphone carrier said in a securities filing Friday that its proposed settlement would pay for claims from class members, legal fees and administrative costs. The company also pledged to spend $150 million for security technology in 2022 and 2023.
The company on Friday said it admitted no liability, wrongdoing or responsibility in the proposed settlement, which could win court approval as soon as December.
T-Mobile
TMUS -0.53%
admitted a security lapse last year after personal information about more than 50 million of its current, former and prospective customers was found for sale online. A 21-year-old American living in Turkey claimed credit for the intrusion and said the company’s lax security practices cleared an easy path for the theft of the data, which included Social Security numbers, birth dates and phone-specific identifiers.
Settling the resulting class-action litigation, which was consolidated in the U.S. Court for the Western District of Missouri, would clear a cloud that has hovered over the telecom company since late last year.
A
T-Mobile
TMUS -0.53%
spokeswoman said the proposed settlement resolves the consumer class-action suits tied to the hack, adding that the company continues to cooperate with regulators who are separately investigating the incident.
The company said it expects to post a pretax charge of $400 million in the second quarter related to the settlement. T-Mobile is slated to report financial results from the June period premarket on Wednesday.
The court case is captioned “In re: T-Mobile Customer Data Security Breach Litigation, Case No. 21-md-3019-BCW.”
Write to Drew FitzGerald at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
T-Mobile admitted a security lapse in 2021 after personal information of over 50 million of its current, former and prospective customers was found for sale online.
Photo:
David Paul Morris/Bloomberg News
T-Mobile US Inc.
proposed paying a group of victims $350 million to settle a class-action lawsuit brought by victims of a 2021 hack of sensitive customer information.
The cellphone carrier said in a securities filing Friday that its proposed settlement would pay for claims from class members, legal fees and administrative costs. The company also pledged to spend $150 million for security technology in 2022 and 2023.
The company on Friday said it admitted no liability, wrongdoing or responsibility in the proposed settlement, which could win court approval as soon as December.
T-Mobile
TMUS -0.53%
admitted a security lapse last year after personal information about more than 50 million of its current, former and prospective customers was found for sale online. A 21-year-old American living in Turkey claimed credit for the intrusion and said the company’s lax security practices cleared an easy path for the theft of the data, which included Social Security numbers, birth dates and phone-specific identifiers.
Settling the resulting class-action litigation, which was consolidated in the U.S. Court for the Western District of Missouri, would clear a cloud that has hovered over the telecom company since late last year.
A
T-Mobile
TMUS -0.53%
spokeswoman said the proposed settlement resolves the consumer class-action suits tied to the hack, adding that the company continues to cooperate with regulators who are separately investigating the incident.
The company said it expects to post a pretax charge of $400 million in the second quarter related to the settlement. T-Mobile is slated to report financial results from the June period premarket on Wednesday.
The court case is captioned “In re: T-Mobile Customer Data Security Breach Litigation, Case No. 21-md-3019-BCW.”
Write to Drew FitzGerald at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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