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T-Mobile settles class-action lawsuit over 2021 data breach for $500 million

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T-Mobile settles class-action lawsuit over 2021 data breach for $500 million

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As part of a class action lawsuit settlement for a 2021 data breach, T-Mobile has agreed to pay $500 million. According to the court complaint on Friday, the customer information of “roughly 76.6 million U.S. persons identified by T-Mobile” was compromised. A report published by Motherboard in August of 2021 indicated that the compromised consumer data includes Social Security numbers, names, residences, and driver licence information.

$350 million of the settlement sum will be shared between customers and attorneys (to pay fees and legal costs). The amount paid to individual customers will depend on the amount paid to attorneys and the number of customers who opt into the class action settlement. T-Mobile will soon notify affected consumers about the settlement.

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T-Mobile must spend the remaining $150 million on security measures between now and 2023 to reduce the likelihood of another data leak (the company has had five breaches involving customer data in the last four years).

The class action lawsuit alleged that T-Mobile was unable to protect its customers’ data, failed to notify individuals affected, and had “inadequate data security.” T-Mobile did not admit wrongdoing in any of these allegations by settling the lawsuit.

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