A significant data breach at T-Mobile in 2021 has led to one of the largest class-action settlements in U.S. history. With a settlement amount of $350 million, those affected by this incident are now awaiting their compensation checks. Whether you're a past T-Mobile subscriber or someone who submitted a claim, it’s essential to understand what this settlement entails and what you might expect in terms of payment.
T-Mobile's 2021 data breach exposed sensitive information, including names, addresses, phone numbers, dates of birth, and social security numbers of approximately 76 million subscribers. The settlement, while substantial, pales in comparison to the $700 million penalty that Equifax faced in 2019. If you missed the deadline to submit a claim, unfortunately, it is too late, but those who did submit their claims are now just waiting for their compensation to arrive.
For claimants anticipating their share, it is crucial to temper expectations. While some claimants who can demonstrate significant out-of-pocket expenses due to the breach may receive up to $25,000, this amount is reserved for those who faced tangible losses, such as expenses related to identity theft or extensive credit monitoring. The majority of claimants without supporting documentation will receive $25, and California residents may see payments as high as $100.
The distribution process is set to begin in April, so keep an eye on your mailbox and bank account. Payments will be made based on the chosen method of claimants—via direct deposit or paper check. Notably, after the priority claims are settled, remaining funds will be disbursed on a pro-rata basis, potentially resulting in smaller amounts for those without heavy documentation of losses.
It’s worth noting that in many class-action settlements, the legal teams often receive significant portions, leaving claimants with less than expected. For context, recent settlements have shown recipients receiving far less than anticipated. In a recent case with Verizon, some customers reported receiving low payments, including amounts as little as $2.51. As such, T-Mobile claimants should prepare for the possibility of disappointing payouts.
