T-Mobile has reached a milestone in the aftermath of a significant data breach, agreeing to a class action settlement payout of $350 million. These payments are set to begin in April 2025, marking a crucial development for millions of affected customers.

The Data Breach Incident

The class action lawsuit stemmed from a cyberattack that occurred in August 2021, which compromised the personal information of approximately 76 million customers across the United States. The breach exposed sensitive data, including customers’ names, addresses, and Social Security numbers.

While T-Mobile has denied any wrongdoing in connection with the breach, the company has decided to settle the lawsuit to avoid prolonged legal disputes.

Who is Eligible for Payments?

Eligibility for these payments has been predetermined, with all 76 million customers affected by the breach qualifying for compensation. Notices regarding the settlement were disseminated in 2022, but if you lost track, here’s a summary of the eligibility criteria:

• Customers who suffered financial losses or incurred expenses related to fraud or identity theft due to the breach may claim significant reimbursements.
• Those who documented their out-of-pocket losses might receive reimbursements of up to $25,000.
• Individuals who were impacted but did not file claims for losses can still expect a smaller payment, capped at $25 (or up to $100 for residents in California during that time).

How Will Payments Be Distributed?

The $350 million fund is structured to prioritize reimbursement for out-of-pocket expenses experienced by claimants. The remaining amount will then be allocated on a “pro rata basis,” meaning that individual payments may vary, and could potentially be less than the maximum amounts advertised.

Given the large scale of claims, past settlements in similar cases have resulted in customers receiving minimal payouts; thus, recipients should be prepared for possible disappointments.

For More Information

For individuals unsure about their eligibility, further details are available through the settlement administrator. They can be contacted online or by phone at 1-833-512-2314.