T-Mobile agreed Friday to pay $350 million to settle a class action lawsuit over a cyber attack in August 2021, GeekWire reported. In that attack, a hacker broke into its computer systems and stole sensitive data related to tens of millions of customers.
The Bellevue, Washington-based wireless carrier has also agreed to make an additional $150 million investment in data security and related technology this year and next, according to a filing Friday afternoon with the U.S. Securities and Exchange Commission.
The proposed class includes more than 76 million customers, with several related cases consolidated, according to a copy of the proposed settlement filed in the U.S. District Court for the Western District of Missouri. the $350 million payout will be used to fund claims filed by class members, plaintiffs’ legal fees and administrative costs.
In its filing with the Securities and Exchange Commission, T-Mobile said that if the court approves the settlement, it “will resolve virtually all claims brought by the Company’s current, former and future customers affected by the 2021 cyberattack.
According to a T-Mobile spokesperson, the company continues to cooperate with various regulatory agencies that are separately investigating the incident.
T-Mobile posted a statement about the settlement on its website Friday. The company said, “We are pleased to settle this consumer class action lawsuit as we continue to invest time, energy and resources to address this challenge.”
T-Mobile is expected to record a pre-tax charge of about $400 million in the second quarter as a result of the settlement, according to the SEC filing. The filing notes that the charge and $150 million in security investments were anticipated in its previous financial guidance to investors.