T-Mobile subscribers affected by the company’s significant 2021 data breach can expect to receive settlement checks soon. This breach resulted in a class action lawsuit that culminated in a settlement fund of $350 million, marking it as the second-largest data breach settlement in U.S. history.
While this amount is substantial, it is notably less than the $700 million settlement Equifax faced in 2019. For subscribers who submitted claims, the wait is almost over.
However, those who missed the deadline to file a claim will not be eligible for compensation. It’s important for claimants to manage their expectations; the payments likely won’t be life-changing.
Individuals who can substantiate their claims of significant financial loss due to fraud or identity theft linked to the breach may receive as much as $25,000. Priority claimants must demonstrate that they incurred costs while securing their financial accounts or paid for credit monitoring services as a result of the breach.
The data breach compromised the personal details of 76 million T-Mobile subscribers, including names, addresses, phone numbers, dates of birth, and Social Security numbers. Payments from the $350 million settlement are expected to start in April, so claimants should begin monitoring their mail and bank accounts.
For those without documentation of out-of-pocket losses, payment will be limited to up to $25, with California residents receiving potential amounts of up to $100. Payments will be issued through the method selected by each claimant, such as direct deposit or paper checks.
After prioritizing significant claims, remaining funds will be distributed on a pro-rata basis, which means some recipients may receive less than anticipated. Previous class action settlements have seen payouts lower than expected, leaving many disappointed.