T-Mobile settles suit over massive hacking for $350M
Among the data affected by the hack were customer social security numbers, addresses, birthdates and driver's licenses
T-Mobile US has settled litigation over a cyberattack last year that compromised information belonging to an estimated 76.6 million people.
The telecom company agreed on Friday to pay $350 million and spend an additional $150 million to upgrade data security.
The preliminary settlement filed in federal court in Kansas City, Missouri, requires a judge's approval.
T-Mobile logo is seen displayed on a phone screen in this illustration photo. ((Photo by Jakub Porzycki/NurPhoto via Getty Images) / Getty Images)
T-Mobile disclosed the breach last August. At first, 47 million current, former and prospective customers were thought to be affected.
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The number was raised past 50 million, and T-Mobile said in November its investigation uncovered an additional 26 million people whose personal information was accessed.
Signage for a T-Mobile store in San Francisco, California,. (Photographer: David Paul Morris/Bloomberg via Getty Images / Getty Images)
T-Mobile denied wrongdoing, specifically, including accusations it had inadequate data security.
The company has said the information included names, addresses, birthdates, driver's license data and Social Security numbers.
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Friday's settlement covered nationwide litigation combining at least 44 proposed class-action lawsuits.
A T-Mobile store in Herald Square in New York. ( (AP Photo/Bebeto Matthews, File) / AP Newsroom)
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.
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John Binns, a 21-year-old American who had moved to Turkey a few years earlier, took responsibility for the hacking, The Wall Street Journal reported last August.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TMUS | T-MOBILE US INC. | 246.94 | +0.74 | +0.30% |
The impact of the settlement to the company's bottom line is approximately a $400 million pre-tax charge in this year's second quarter. T-Mobile said it contemplated the charge and $150 million of spending in prior financial guidance.
The settlement could be approved by December.
Reuters contributed to this report.