T-Mobile to pay $350 million in settlement over massive hacking


FILE PHOTO: A T-Mobile logo is seen on the storefront door of a store in Manhattan, New York, U.S., April 30, 2018. REUTERS/Shannon Stapleton

(Reuters) - T-Mobile US Inc agreed on Friday to pay $350 million and spend an additional $150 million to upgrade data security to settle litigation over a cyberattack last year that compromised information belonging to an estimated 76.6 million people.

The preliminary settlement was filed with the federal court in Kansas City, Missouri.

It requires a judge's approval, which the second-largest U.S. wireless carrier said could come by December.

T-Mobile denied wrongdoing, specifically, including accusations that it breached its duties to protect customers' personal information and had inadequate data security.

The Bellevue, Washington-based company expects an approximately $400 million pre-tax charge in this year's second quarter for the settlement. It said it contemplated the charge and $150 million of spending in prior financial guidance.

T-Mobile disclosed the data breach last August, saying at the time it affected more than 47 million current, former and prospective customers.

The number soon grew past 50 million, and T-Mobile said in November its investigation uncovered an additional 26 million people whose personal information was accessed.

T-Mobile has said the information included names, addresses, birth dates, driver's license data and Social Security numbers.

Friday's settlement covered nationwide litigation combining at least 44 proposed class-action lawsuits.

Class members may receive cash payments of $25, or $100 in California, and some could receive up to $25,000 to cover out-of-pocket losses, settlement papers show. They will also receive two years of identity theft protection.

John Binns, a 21-year-old American who had moved to Turkey a few years earlier, took responsibility for the hacking, saying he pierced T-Mobile defenses after finding an unprotected router on the internet, The Wall Street Journal said last August.

The plaintiffs' lawyers may seek fees of up to 30%, or $105 million, from the settlement, the settlement papers show.

(Reporting by Jonathan Stempel and Sara Merken in New York; Editing by Aurora Ellis)

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

   

Next In Tech News

‘Graffiti on a car is wrong’: Chinese mother lets daughter, 2, paint pictures all over family Porsche, sparking online parenting debate
Apple overhauls App Store pricing to range from US$0.29 to US$10,000
Good news or bad? Soon air passengers in Europe will be able to surf and make calls with 5G
Super rich folks in wealth hubs, including S’pore, still have their eyes on crypto
FTX collapse crushes crypto dreams in Africa and beyond
Taiwan seeks to reassure on TSMC commitment to island despite U.S. investment
Elon Musk slams San Francisco for probe of bedrooms at Twitter HQ
Crypto CEOs fearing worst is yet to come are cutting more jobs
Australia fines Uber $14m for misleading on fares and cancellation fees
How to make money on Discord

Others Also Read