T-Mobile US plans $500 million settlement

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A hacker attack stole customer data from 76.6 million US residents. Now T-Mobile US wants to increase its cyber security.

(Photo: AP)

Bellevue The American Telekom subsidiary T-Mobile US wants to settle user complaints after a major hacker attack with a payment of half a billion dollars. According to the agreement published at the weekend, 350 million dollars (343 million euros) are to flow into a fund for suing US customers. A further 150 million dollars are to be spent this year and next to improve cyber security.

According to court documents, 76.6 million US residents were identified as victims of last year’s online attack. The stolen user data included names and telephone numbers.

As is usual in such cases, the agreement expressly states that it does not constitute an admission of guilt by T-Mobile US. After the cyber attack, T-Mobile US was accused of insufficient protection of user data in class action lawsuits. Several dozen lawsuits were bundled in Missouri.

The deal still has to be approved by a Missouri judge. According to the company, this can happen in December – but appeals processes could still cause delays, it said.

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