T-Mobile US in $500m Pact to Settle Suit Over Cyberattack

T-Mobile US said it agreed to settle a consolidated class action lawsuit tied to a 2021 cyberattack.

• To pay $350m to fund claims submitted by class members, legal fees of plaintiffs’ counsel and costs of administering settlement
• To commit to an aggregate incremental spend of $150m for data security and related technology in 2022 and 2023
• Settlement is subject to court approval, which is expected as early as December
• Sees charge of ~$400m in 2Q
• Charge and the $150m incremental spend were contemplated in previously announced financial guidance
• NOTE: T-Mobile Says Over 40 Million Customer Records Affected in Hack

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