T-Mobile to Arbitrate Suit Accusing Company of Lax Security

T-Mobile USA Inc. won its bid to arbitrate claims that its lax security measures allowed hackers to scam a customer out of $238,000 after a Florida federal judge found the terms and conditions necessitated a stay and arbitration of the case.

Despite deriding T-Mobile’s terms and conditions as unconstitutional and unconscionable, plaintiff Edward Mendez never challenged the severable delegation provision, Chief Judge Cecilia M. Altonaga wrote in an order filed Monday in the U.S. District Court for the Southern District of Florida.

Mendez sued T-Mobile in October, accusing the company of failing to adequately protect him from hackers who stole ...