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T-Mobile is content to pay $350 million to customers in data breaches




T-Mobile on Friday agreed to pay $350 million to customers affected by a class-action lawsuit filed after the company disclosed last August that personal information such as social security numbers had been stolen in a cyber attack. (Alan Diaz, AP Photo)

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NEW YORK — T-Mobile has agreed to pay $350 million to customers affected by a class-action lawsuit filed after the company disclosed last August that personal information such as social security numbers had been stolen in a cyber attack.

In a filing with the Securities and Exchange Commission on Friday, the cellphone company said the funds would pay for claims by class members, the legal fees of the plaintiffs̵[ads1]7; attorney and the costs of administering the settlement. It also said it would spend $150 million next year and in 2023 to strengthen data security and other technologies.

T-Mobile said the settlement contains no admission of liability, wrongdoing or liability by any of the defendants.

The company said it expects court approval of the terms of the settlement as early as December 2022.

Nearly 80 million US residents were affected by the breach. In addition to social security numbers, other information that was breached includes names and information from driver’s licenses or other identification.

T-Mobile, based in Bellevue, Washington, became one of the nation’s largest mobile carriers, along with AT&T and Verizon, after acquiring rival Sprint in 2020. It reported having a total of 102.1 million US customers after the merger.

T-Mobile said it expects to record a total pretax charge of about $400 million in the second quarter of this year.

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