U.S. markets closed
  • S&P 500

    4,280.15
    +72.88 (+1.73%)
     
  • Dow 30

    33,761.05
    +424.38 (+1.27%)
     
  • Nasdaq

    13,047.19
    +267.27 (+2.09%)
     
  • Russell 2000

    2,016.62
    +41.36 (+2.09%)
     
  • Crude Oil

    91.88
    -2.46 (-2.61%)
     
  • Gold

    1,818.90
    +11.70 (+0.65%)
     
  • Silver

    20.83
    +0.49 (+2.39%)
     
  • EUR/USD

    1.0257
    -0.0068 (-0.66%)
     
  • 10-Yr Bond

    2.8490
    -0.0390 (-1.35%)
     
  • GBP/USD

    1.2139
    -0.0064 (-0.52%)
     
  • USD/JPY

    133.4800
    +0.4810 (+0.36%)
     
  • BTC-USD

    24,529.07
    +495.80 (+2.06%)
     
  • CMC Crypto 200

    574.64
    +3.36 (+0.59%)
     
  • FTSE 100

    7,500.89
    +34.98 (+0.47%)
     
  • Nikkei 225

    28,546.98
    +727.65 (+2.62%)
     

T-Mobile to pay $350 mln in settlement over massive hacking

  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

By Jonathan Stempel and Sara Merken

July 22 (Reuters) - T-Mobile US Inc agreed on Friday to pay $350 million and spend an additional $150 million to upgrade data security to settle litigation over a cyberattack last year that compromised information belonging to an estimated 76.6 million people.

The preliminary settlement was filed with the federal court in Kansas City, Missouri.

It requires a judge's approval, which the second-largest U.S. wireless carrier said could come by December.

T-Mobile denied wrongdoing, specifically, including accusations that it breached its duties to protect customers' personal information and had inadequate data security.

The Bellevue, Washington-based company expects an approximately $400 million pre-tax charge in this year's second quarter for the settlement. It said it contemplated the charge and $150 million of spending in prior financial guidance.

T-Mobile disclosed the data breach last August, saying at the time it affected more than 47 million current, former and prospective customers.

The number soon grew past 50 million, and T-Mobile said in November its investigation uncovered an additional 26 million people whose personal information was accessed.

T-Mobile has said the information included names, addresses, birth dates, driver's license data and Social Security numbers.

Friday's settlement covered nationwide litigation combining at least 44 proposed class-action lawsuits.

Class members may receive cash payments of $25, or $100 in California, and some could receive up to $25,000 to cover out-of-pocket losses, settlement papers show. They will also receive two years of identity theft protection.

John Binns, a 21-year-old American who had moved to Turkey a few years earlier, took responsibility for the hacking, saying he pierced T-Mobile defenses after finding an unprotected router on the internet, The Wall Street Journal said last August.

The plaintiffs' lawyers may seek fees of up to 30%, or $105 million, from the settlement, the settlement papers show.

(Reporting by Jonathan Stempel and Sara Merken in New York; Editing by Aurora Ellis)