Therefore, millions of ex-T-Mobile and current customers are enjoying the effects of a class-action settlement regarding a major data breach in the year 2022. Almost three years after the wireless carrier was hacked in a cyberattack, which revealed the personal data of 76 million Americans, paybacks from the $350 million settlement fund are expected to commence this month.
As for April 8, representatives for the settlement had not confirmed whether any payments had been officially charged out to customers, but it should be noted that soon those who qualified would be receiving compensation. It marks a red-letter day for consumers because of one of the biggest data breaches in U.S. history.
The breach and legal fallout
The attack that happened in 2021 resulted in the compromise of sensitive data about customers, including names, addresses, dates of birth, and Social Security Numbers. As a result, T-Mobile was pursued with a class action lawsuit against the company for purported negligence regarding the mishap.
In 2022, the corporation agreed to pay $350 million to settle the claims, making it the second-largest data breach settlement ever in the U.S., after Equifax’s $700 million settlement in 2019.
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Who gets paid and for how much?
Customers paid at least partially from the settlement fund, which were all those who filed a valid claim on time. If you are a patient who just realized that you were entitled to file your claim, you can no longer file one and receive compensation.
Cash compensation for actual out-of-pocket losses, identity theft protection services, costs and fees to manage the settlement process, and administrative overhead associated with those specific actions are the items that fill the settlement fund. Some customers will receive token amounts, perhaps under $25, depending on how much of the fund can remain after higher priority claims have been satisfied.
If you lived in California at the time of the breach, you qualify for $100, regardless of whether you incurred damages. Shrink-wrapping credit, hiring identity protection, or finishing up fraud-infringement costs may also be included in losses related to identity theft and may reimburse up to $25,000 with proper documentation of your losses.
How and when will the payments be sent?
The precise payment dates have not been established, but distributions are expected to begin within this month, April 2025. Customers will receive their payments in the form they chose when filling out the application— either as a mailed paper check or as a digital deposit applicable entry.
Another set of instructions will be provided to those who requested identity defense services on how to activate those protections.
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Final thoughts
It has taken many years to reach this point; affected customers are finally getting some closure — albeit cash — courtesy of the T-Mobile data breach. If you submitted a valid claim, stay tuned for mailbox or bank account news in a few weeks. Keep checking back for updates or full settlement documents on the official settlement website.
