Some T-Mobile customers could soon see a payout of up to $25,000 as part of a class action settlement linked to a major data breach in 2021. The payments are set to be distributed starting in April 2025.
BACKGROUND ON THE LAWSUIT
The lawsuit stemmed from a cybersecurity breach on August 16, 2021, where hackers gained access to sensitive customer data. While no financial details were exposed, the breach compromised personal information, including names, addresses, birth dates, ID details, and some Social Security numbers.
Customers who filed claims argued that T-Mobile failed to implement adequate security measures, making the breach preventable. While the company did not admit wrongdoing, it agreed to a $350 million settlement to resolve the claims and avoid prolonged litigation.
Following the breach, T-Mobile CEO Mike Sievert acknowledged the failure, stating, “We didn’t live up to the expectations we have for ourselves to protect our customers.”
WHO QUALIFIES FOR A PAYMENT?
To be eligible for a payout, customers had to submit a claim by the deadline of January 23, 2023. Additionally, those who wished to object to or exclude themselves from the settlement had to do so by December 8, 2022.
Final court approval was granted on June 29, 2023, paving the way for payments to begin in April 2025.
PAYMENT AMOUNTS
The amount each claimant receives will depend on whether they provided documentation of financial losses tied to the breach.
- With Proof of Expenses: Those who submitted supporting documents, such as receipts for credit monitoring services, identity theft protection, or fraud-related expenses, may receive up to $25,000. Claimants could also be compensated for lost time at a rate of up to $25 per hour.
- Without Proof of Expenses: Customers who did not submit documentation are eligible for a $25 payment, while California residents may receive $100 due to state-specific consumer protection laws.
ADDITIONAL BENEFITS
All eligible claimants were also granted two years of identity protection services through Pango, which includes credit monitoring from TransUnion, dark web surveillance, and identity theft insurance coverage of up to $1 million. Those directly impacted by identity theft linked to the breach were also provided with restoration services.
OTHER SETTLEMENT OPPORTUNITIES
Beyond the T-Mobile case, other class action settlements are also distributing payments to eligible claimants:
- A publishing-related settlement is offering $5,000 to those who submitted claims before the March 9, 2025, deadline.
- A tractor-related lawsuit is issuing $1,100 payouts from a $31.9 million settlement fund.
For more details on the T-Mobile settlement, customers can visit the official claims website .
