Wireless service provider T-Mobile has agreed to pay $350 million to settle complaints resulting from a significant data breach that happened last year. The plaintiffs claim that the theft exposed data on millions of customers.
The settlement was initially made public by the Securities and Exchange Commission (SEC) in a filing in July.
Payments to present and past T-Mobile customers may be a part of the settlement. Naturally, not the entire $350 million will be given to customers. Lawyers need to be paid. In addition, $150 million will be used to enhance T-Mobile security, which the hacker referred to as “awful” in a Wall Street Journal confession.
Users of T-Mobile at the time of the attack may receive $25 if the settlement is approved, according to Reuters. Residents in California could get up to $100. The final amount will presumably depend on how many clients submit claims. The number of customers who were hacked is actually unknown. T-Mobile contests the assertion made by the plaintiffs’ lawyers that there are more than 76 million of them.
What sort of payment should I anticipate from the settlement?
Reuters reports that California residents who are members of the class — in this case, individuals who used T-Mobile in August 2021 — may be entitled to a cash payment of $25 or $100.
It might be far less, depending on how many people respond. Along with settling claims, the $350 million must also be used to resolve outstanding legal fees and administrative expenses. The plaintiffs’ attorneys have the right to ask for up to 30% of the award, per court records.
To compensate them for losses they suffered as a direct result of the breach, some victims may also be qualified to receive payments of up to $25,000.
T-Mobile is also offering two free years of McAfee’s ID Theft Protection Service to anyone who believes they may have been a victim of the breach.
How can I determine whether T-Mobile will pay me?
The full details of T-payment Mobile’s strategy are not yet available to the public. An eligibility notice is normally mailed to the class members.
After being informed, consumers have 90 days to file claim forms or choose to opt out of the settlement and reserve the right to pursue their own independent legal claims, according to court filings.
It could take several months before people find out whether they will get compensation from the settlement.
When are payments distributed?
Members of the qualified class may get paid as early as 2023. T-Mobile shall deliver to the court within 30 days a list of the members of the Class, including, “to the extent available,” their names, addresses, telephone numbers, and email addresses.
Following notification of the qualified parties, claims may be filed. After legal fees are deducted, the funds are distributed to the class members who made claim submissions. That might take months.
