T-Mobile is preparing to distribute settlement payments in April 2025 related to its 2021 data breach that affected approximately 79 million subscribers. The breach exposed sensitive personal information including social security numbers, phone numbers, physical addresses, and driver’s licenses, highlighting ongoing challenges in telecommunications security.
Following a class action lawsuit, T-Mobile agreed in 2022 to pay $350 million to affected subscribers and lawyers. The settlement fund will cover administrative costs, legal fees, and service awards for class representatives, with remaining funds distributed to eligible claimants across three compensation categories. The settlement comes amid increased scrutiny of mobile carrier data security practices and follows several other high-profile telecom breaches.
Eligible claimants include individuals affected by the 2021 breach who received a settlement eligibility notice and submitted valid claim forms by January 23, 2023. The settlement excludes T-Mobile employees, judges and their families, and those who opted out. The breach has also prompted legal action from state authorities, including a lawsuit filed by Washington State Attorney General Bob Ferguson.
The settlement offers three types of compensation: out-of-pocket loss reimbursement up to $25,000 for documented expenses related to the breach; loss of time reimbursement at $25 per hour for up to 15 hours spent addressing breach-related issues; and alternative cash payments ranging from $25 to $100, depending on the claimant’s state of residence.
While payment distribution was initially expected in mid-2025, recent updates indicate distributions will begin in April 2025. The settlement administrator will provide updates through the official settlement website.
As part of the settlement, T-Mobile is providing affected customers with two years of free identity theft protection services, including monthly credit monitoring, dark web surveillance, and fraud alerts. The move reflects broader industry trends toward enhanced digital identity protection measures and follows recent FCC regulations strengthening telecom security requirements.
The breach and subsequent settlement have led T-Mobile to implement additional security measures, particularly as the telecommunications industry faces increasing challenges from sophisticated cyber threats and SIM swap attacks. The security enhancements include improved authentication protocols and stronger data protection mechanisms for customer information.
Sources: Android Authority, PhoneArena, KVKNarayangaon, Gibson Dunn
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