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Eligible T-Mobile customers who filed claims as part of the wireless carrier’s 2022 class-action settlement related to a significant data breach are anticipated to begin receiving their payouts this month. The settlement addresses a 2021 cyberattack that compromised millions of customers’ personal data.
As of April 8, inquiries to settlement administrators regarding the commencement of payments have gone unanswered.
This settlement arises from a class-action lawsuit initiated against T-Mobile following a 2021 data breach. The incident exposed sensitive personal information, including names, addresses, and Social Security numbers, of approximately 76 million U.S. customers. In 2022, T-Mobile consented to a $350 million settlement to resolve allegations that inadequate security measures contributed to the breach. This remains the second-largest data breach settlement in U.S. history, surpassed only by Equifax’s $700 million settlement in 2019.
Understanding Your T-Mobile Data Breach Settlement Payout
If your personal information was exposed in the data breach, but you did not submit a claim, it is now too late to participate in this settlement. The claim filing period has closed, and the process is now focused on distributing payments.
T-Mobile has allocated $350 million to a settlement fund. This fund will be used for:
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- Cash payments for documented out-of-pocket losses.
- Compensation for time spent addressing issues related to the data breach.
- Provision of identity theft defense and restoration services.
- Notification to class members and administration of the settlement process.
- Payments to class representatives who initiated the lawsuit.
- Coverage of attorney fees and legal expenses.
Settlement Payment Amounts May Vary
Reports indicate that some individual settlement payouts may be less than $25. Priority for larger payments will be given to claimants who can substantiate actual out-of-pocket financial losses resulting from the data breach.
Additional Compensation for California Residents
Individuals who resided in California at the time of the data breach are eligible to receive a base payment of $100.
Reimbursement for Data Breach Related Expenses
Claimants who incurred expenses to recover from or prevent identity theft or fraud—such as costs for credit freezes, credit monitoring services, or direct financial losses—and who properly documented these expenses, may be eligible for reimbursement up to $25,000.
Claimants Approved for Identity-Defense Services
Individuals who submitted and were approved for identity theft protection services will receive separate communications detailing how to activate these services.
Payment Distribution Methods
Monetary settlement payouts will be distributed via the payment method selected by each claimant during the claim submission process. This could be either a physical check mailed to their address or a direct digital deposit to their bank account.
Detailed information and legal documents pertaining to the lawsuit are available online.