T-Mobile Payments Issued in $350M Data Breach Settlement

T-Mobile US, Inc. and T-Mobile USA, Inc.

If you were among the approximately 76 million U.S. residents whose personal information was compromised in the 2021 T-Mobile data breach, and submitted a claim, you may have a payment coming from the data breach class action settlement.

T-Mobile US, Inc. and T-Mobile USA, Inc. agreed to pay $350 million to resolve a class action lawsuit. The lawsuit alleged that T-Mobile failed to adequately protect consumer data, leading to a criminal cyberattack that exposed sensitive personal information.

Impacted current and former T-Mobile customers may have had the following information compromised in the breach:

Name
Address
Zip code
Phone number
Date of birth
Social Security number or tax identification number
Driver’s license or other government identification number
Account establish date
Name of authorized user
IMSI, MSISDN, PIN, or personal unlock code

Who is receiving a T-Mobile data breach settlement payout?

You could be receiving a class action rebate if:

You are one of the approximately 76 million U.S. residents identified by T-Mobile as having had your information compromised in the breach.
You received an official notice about the settlement from T-Mobile or the Settlement Administrator.
You submitted a valid settlement claim by the January 23, 2023 deadline.

Were there any exclusions from the T-Mobile settlement?

Anyone who, on or before July 26, 2022, filed or served a written arbitration demand or petition against T-Mobile relating to the data breach, or provided written notice of their intent to pursue arbitration regarding the breach was not eligible for the class action settlement.

How much is the class action settlement payment?

Claimants selected from the following benefits:

Alternative Cash Payment:

$25 for non-California residents
$100 for California residents (as of August 1, 2021)
This option was only available for claimants that did not submit for out-of-pocket losses or lost time reimbursement.

Reimbursement for Out-of-Pocket Losses: Class members could submit for up to $25,000 for documented expenses incurred due to identity theft or fraud related to the breach. Eligible expenses included credit monitoring, professional fees, and monetary losses.
Reimbursement for Lost Time: Class members could submit for up to 15 hours at a reimbursement rate of $25 per hour or their documented hourly wage for time taken off of work. This covers time spent addressing fraud or identity theft related to the breach.
Identity Defense Services: All class members had the option to select two years of free credit monitoring and identity theft protection services provided by Pango, including dark web monitoring, real-time alerts, and $1 million in identity theft insurance.
Restoration Services: Class members could also select to receive two years of access to fraud resolution specialists who can assist with placing fraud alerts, disputing inaccurate credit report information, and working with law enforcement.

How to claim a data breach settlement payment

In order to receive a class action rebate, eligible class members were required to submit a claim online or by mail by January 23, 2023.

Was proof required?

Yes, supporting documentation was required for out-of-pocket losses and some lost time claims:

Receipts or invoices for paid services
Bank or credit card statements showing unreimbursed fees for fraudulent charges
Police report and other proof of identity theft or fraudulent activity such as falsified tax returns.
Lost time claims requesting a higher hourly wage require a paystub or other proof of employment and hourly payrate.

Payout options

Claimants had the following payment choices:

Electronic payment (PayPal, Zelle, Venmo, ACH)
Paper check (if no electronic option is selected)

$350 Million T-Mobile data breach settlement fund

The $350,000,000 settlement fund covers:

Settlement administration costs: To be determined
Attorneys' fees: $45,771,790.40
Attorneys' expenses: $170,845.18
Service awards to class representatives: $2,500 each
Identity defense and restoration services: Total cost determined by number of claims filed
Payments to class members: Remaining settlement funds

Important dates

Deadline to File a Claim: January 23, 2023
Fairness Hearing: January 20, 2023
Final Approval Granted: June 29, 2023
Appeal deadline for deficiency determinations: November 21, 2024

When is the T-Mobile data breach settlement payout date?

According to the official settlement website, distribution of settlement payments is expected to begin on May 30, 2025.

Why did this class action lawsuit and settlement happen?

The class action lawsuit was filed after T-Mobile disclosed a criminal cyberattack on August 16, 2021, which compromised the personal information of millions of U.S. consumers. Plaintiffs alleged that T-Mobile failed to adequately protect consumer data.

T-Mobile denied these allegations but agreed to settle to avoid the costs and risks involved with continued litigation.