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T-Mobile agrees to pay $500 million in class action settlement over 2021 data breach

U.S. carrier T-Mobile has agreed to pay $500 million in a class action settlement for a data breach that took place in 2021. Customer data of “about 76.6 million residents Americans identified by T-Mobile” were compromised according to the court filing on Friday. A Motherboard report in August 2021 identified that customer data implicated in the breach included social security numbers, names, addresses, and driver’s license information of affected customers. Of the settlement amount, $350 million will be split between clients and attorneys (to pay for legal fees and costs). The amount paid to individual clients will depend on the amount paid to attorneys and the number of clients who respond to the class action settlement. Affected customers will soon be notified by T-Mobile of the settlement. T-Mobile will have to spend the remaining $150 million to improve security by 2023 to minimize the possibility of another data breach (the company has had five breaches involving customer data in the past four years). The class action lawsuit accused T-Mobile of failing to protect its customers’ information, failing to notify those affected, and having “inadequate data security.” By settling the lawsuit, T-Mobile does not plead guilty to any of these charges. Sources 1 • 2

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