T Mobile agrees to pay $500 million to settle 2021 Data Breach lawsuit

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In order to settle a class action lawsuit filed against it for failing to protect the information of about 76-million of its customers, T-Mobile has agreed to shell out $500 million as compensation.

Revealing the proposal of agreement with the Securities and Exchange Commission, T-Mobile assured it will use a portion of the announced amount to upgrade its technology regarding data security by the end of 2023.

If we get into the past, in August 2021, the Telecom company announced a data breach that affected over 70+ million of its customers. The leaked information includes date of birth, driving license information, social security numbers, addresses, names and other personal information.

Since the telecom service provider failed to protect the info of its customers, a class action suite was filed in December 2022.

Now, to settle, T-Mobile has requested for the grant of 28 days to cover the cost of notifying people eligible to receive the claim if the proposal gets acceptance from its board. It also cleared the air that the settlement doesn’t account for the acceptance of liability, wrongdoing or responsibility for the data breach…..now that’s interesting!

Strictly speaking, $350 million has been granted to settle dispute and $150 million has been allotted to go for a technology upgrade. And the court of law has granted the company a grace period of 4 months or till December 2022.

NOTE- After acquiring the Sprint company in the year 2020, T-Mobile now has a customer base of 109 million, as per its March 2021 revelation.

 

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Naveen Goud is a writer at Cybersecurity Insiders covering topics such as Mergers & Acquisitions, Startups, Cyber Attacks, Cloud Security and Mobile Security

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