T-Mobile has proposed a settlement of $500 million to end a class-action lawsuit following the August 2021 customer data breach.
In August 2021, it was reported that millions of customer accounts were stolen from T-Mobile, accounts that were then attempted to be sold via hacker forums. In the wake of the major breach, T-Mobile became the subject of a class-action lawsuit, and has come up with a settlement proposal to end the legal activity.
At the time, the breach was said to have concerned either 47.8 million accounts or 100 million, with T-Mobile insisting that it was the lower amount. Most of the data was also said to be records of former and prospective customers who had previously applied for credit via the carrier.
Under the settlement, that figure has become 76.6 million U.S. residents, reports The Verge.
The lawsuit accused T-Mobile of failing to protect its customer's data, not properly notifying affected individuals, and having "inadequate data security." T-Mobile denies the allegations in the agreement, insisting that the settlement isn't an admission of guilt.
Under the settlement proposal, $350 million is destined for a settlement fund, which will be used to pay affected customers as well as deal with lawyer's fees and other costs. The remaining $150 million will be put towards "data security and related technology" investments in 2022 and 2023, above and beyond its existing planned spending.
The proposal was filed on Friday at the District Court for the Western District of Missouri, but still has to be approved by a judge. However, T-Mobile said in an SEC filing that while it anticipates having to make the payout, it "has the right to terminate the agreement under certain conditions."