T-Mobile to pay customers millions for data stolen in a hack

New York. US carrier T-Mobile agreed to pay customers affected by a class action $350 million after the company revealed in August that it had suffered a cyber attack in which users’ personal data, such as Social Security numbers, was stolen.

In a filing with the U.S. Securities and Exchange Commission on Friday, the company said the money will pay refunds to plaintiffs’ clients, plaintiffs’ legal costs and settlement administration costs. It also said it will spend $150 million next year to strengthen data protection and other technologies.

T-Mobile said the settlement does not contain an admission of fault, error, or liability on the part of any of the defendants.

The company said it expects court to agree to the terms of the settlement, possibly in December.

Nearly 80 million residents of the United States were affected by the hack. In addition to Social Security numbers, other information stolen included names, details from driver’s licenses and other means of identification.

Headquartered in Bellevue, Washington, T-Mobile has become one of the largest mobile phone companies in the country, along with AT&T and Verizon, after acquiring rival Sprint in 2020. It reported a total of 102.1 million customers in the United States after the merger.

T-Mobile said it expects total pre-tax fees to be $400 million in the second quarter of this year.