There is a possibility that millions of Americans could be receiving approximately $25,000 in settlement of a class-action lawsuit that resulted due to major data breach involving T-Mobile. Despite the T-Mobile settlement. agreement, the payout schedule has been delayed, however, the money is still set to reach eligible claimants.
The T-Mobile settlement was linked to the 2021 cyberattack that saw sensitive data of 76 million people being exposed. The T-Mobile data breach is yet another reminder of the importance of personal information being protected and what could result if a company fails to protect citizen’s personal data.
More about the T-Mobile settlement
It was in August 2021, that T-Mobile announced it had become a victim of a “malicious cyberware” attack that was believed to have compromised customer’s important details like their names, addresses, Social Security numbers, dates of birth, driver’s license data, and other sensitive information. The extent of the breach was reported to be one of the largest in U.S. telecom industry and it led to outrage after which legal action followed.
T-Mobile, as such, agreed to a $350 million class-action settlement in 2023 without admitting to any wrongdoing. The settlement was a way for T-Mobile to provide compensation to the affected customers who filed claims for the settlement agreement. As per the settlement agreement, the customers who could prove that the breach led directly to financial harm including that of identity theft, recovery costs, or credit-monitoring expenses are eligible to receive up to $25,000. Other affected claimants who were unable to provide documentation of financial damage are still entitled to receive between $25 to $100 in reimbursement.
More about settlement payment delays and payments
While the payments were initially scheduled to begin in April 2025, as a result of unexpected delays got pushed back to May 2025. As per the settlement administrator, despite the new schedule, payouts will certainly still occur, and customers are advised to remain patient.
Customers must be reminded that even when payments begin, the distribution process could take weeks or months, depending on the volume of claims and the respective payment method that each claimant selected. Claimants can as such choose between various digital payment options and the option of paper check when filing.
At this stage, all legal proceedings have been completed, and all claims were due by January 23, 2023. Another settlement for which the claim deadline expired is the Ingo Money data breach settlement.
Revisiting eligibility criteria and payment amounts
All individuals whose personal data was compromised due to the 2021 breach and who met the file claiming deadline are eligible for payout according to the following payment structure:
- $25 to $100 for customers who did not submit proof of any out-of-pocket expenses due to the data breach.
- Up to $25,000 for all the customers who showed proof that they incurred fraud-related expenses that could be traced back to the data breach. Evidence includes that of paying for identity protection or even suffering financial losses due to identity theft.
The highest payment amount from this data breach settlement is specifically for those claimants who could show proof of documented financial harm. Proof in the form of receipts for credit-monitoring subscriptions, letters from banks and credit card companies, or records showing fraudulent transactions were all deemed acceptable.
For all claimants, aside from the financial settlement, T-Mobile will also be offering two years of McAfee’s ID Theft Protection Service and Account Takeover Protection. The reason for these additional services is to reduce further harm and to help individuals to monitor their digital identities in real-time.
Privacy and payouts and why it matters?
The T-Mobile case is one that outlines the value of personal data and the need to protect this information from data breaches. The T-Mobile settlement outlines that companies can and will be held financially accountable should a data breach occur.
Citizens should also monitor their credit and bank statements so they can provide evidence should a data breach happen so they can be compensated accordingly.
While the wait for payments from the T-Mobile Data Breach Settlement may be frustrating, claimants can rest assured they will receive payouts.
