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T-Mobile settles suit over massive hacking for $350M

·1 min read

T-Mobile US has settled litigation over a cyberattack last year that compromised information belonging to an estimated 76.6 million people.

The telecom company agreed on Friday to pay $350 million and spend an additional $150 million to upgrade data security.

The preliminary settlement filed in federal court in Kansas City, Missouri, requires a judge's approval.

T-Mobile disclosed the breach last August. At first, 47 million current, former and prospective customers were thought to be affected.

T-MOBILE PARTNERS WITH WALMART, EXPANDING PRESENCE IN 2,300 RETAIL STORES NATIONWIDE

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

T-Mobile denied wrongdoing, specifically, including accusations it had inadequate data security.

The company has said the information included names, addresses, birthdates, driver's license data and Social Security numbers.

T-MOBILE HACKER WHO STOLE DATA ON 50 MILLION CUSTOMERS: ‘THEIR SECURITY IS AWFUL’

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.

T-MOBILE’S DATA BREACH: WHAT CUSTOMERS NEED TO KNOW

John Binns, a 21-year-old American who had moved to Turkey a few years earlier, took responsibility for the hacking, The Wall Street Journal reported last August.

The impact of the settlement to the company's bottom line is approximately a $400 million pre-tax charge in this year's second quarter. T-Mobile said it contemplated the charge and $150 million of spending in prior financial guidance.

The settlement could be approved by December.

Reuters contributed to this report.