T-Mobile Class Action Lawsuit, $350M Settlement Payments Now Complete—What 76M Affected Customers Need to Know

The T-Mobile class action lawsuit from 2021 has reached a major milestone: settlement payments totaling $350 million have been fully distributed as of May 30, 2025. This massive data breach class action—the second-largest in U.S. history—arose from a criminal cyberattack that compromised the personal information of approximately 76 million U.S. consumers in August 2021. Affected customers who filed valid claims have now received compensation ranging from $25 to $25,000, depending on documented losses and residency status.

The case, officially titled In re: T-Mobile Customer Data Security Breach Litigation (MDL No. 4:21-md-03019-BCW), was consolidated in the U.S. District Court for the Western District of Missouri after dozens of individual lawsuits were filed nationwide. The settlement received final court approval on June 29, 2023, but payment distribution was delayed by appeals until early 2025.

What Was the T-Mobile Data Breach?

On August 16, 2021, T-Mobile announced that it had been the victim of a criminal cyberattack on its systems that began months earlier. The data breach began in March 2021 and continued until Aug. 12, 2021, but the company remained unaware until an anonymous source notified them that customer data was posted for sale on the dark web.

The exposed information included:

• Full names
• Addresses and zip codes
• Phone numbers
• Dates of birth
• Social security numbers/tax identification numbers
• Driver’s license numbers and other government identification numbers

The specific information accessed for each person included some combination of names, addresses, zip codes, phone numbers, dates of birth, social security number/tax identification number, and/or other government identification number including driver’s license number. Critically, no financial information or credit card data was compromised in the breach.

Legal Claims Against T-Mobile

The plaintiffs alleged claims of negligence, breach of confidence, invasion of privacy, breaches of express and implied contract, and unjust enrichment against T-Mobile. The core allegations centered on T-Mobile’s failure to implement adequate cybersecurity measures despite having experienced multiple previous data breaches.

The lawsuits alleged that T-Mobile was negligent in failing to adequately protect the privacy and security of sensitive customer information. Plaintiffs argued the breach was preventable with reasonable cybersecurity measures. According to the lawsuit, T-Mobile was unaware of the breach until an anonymous outside source notified the company that its customers’ data was posted for sale on the dark web, highlighting alleged failures in security monitoring.

T-Mobile denied all allegations of wrongdoing but agreed to settle to avoid prolonged litigation costs and risks.

The $350 Million Settlement Terms

Under the settlement, T-Mobile agreed to pay $350 million to compensate class members and to invest an additional $150 million in improvements to its data security. This $500 million total commitment made headlines as one of the largest data breach settlements in U.S. history.

Settlement Timeline

• August 16, 2021: T-Mobile announced the data breach
• July 22, 2022: Plaintiffs filed motion for preliminary settlement approval
• July 26, 2022: Preliminary approval of the proposed settlement was granted
• January 23, 2023: Claims deadline passed
• June 29, 2023: Final approval was granted
• July 29, 2024: Eighth Circuit Court of Appeals affirmed settlement (with partial reversal on attorney fees)
• January 16, 2025: The District Court entered an Order and Judgment granting Class Counsel’s revised fee motion
• May 30, 2025: Distribution of settlement payments began
• May 30, 2025: All court proceedings completed and distribution finished

Who Was Eligible for Compensation?

Settlement class members included:

• Approximately 76 million U.S. residents whose personal information was compromised in the 2021 T-Mobile data breach
• Current T-Mobile customers as of August 1, 2021
• Former T-Mobile customers whose data was exposed
• Prospective customers who had applied for T-Mobile credit

To qualify for payment, individuals must have:

1. Been identified by T-Mobile as having compromised information
2. Received official settlement notice from T-Mobile or the Settlement Administrator
3. Submitted a valid settlement claim by the January 23, 2023 deadline

Settlement Payment Amounts

The compensation structure offered different payment tiers:

For Documented Losses: Class members who experienced extraordinary expenses as a result of the T-Mobile data breach may be able to receive up to $25,000, with reimbursement for:

• Out-of-pocket expenses for credit monitoring, identity theft protection
• Fraud-related costs
• Up to 15 hours of lost time at a rate of $25 per hour, or class members’ documented hourly wage if they took time off work

For Alternative Cash Payments:

• Class members who do not wish to submit a claim form for lost time or out-of-pocket expenses can receive an alternative payment of $25 or $100 if they lived in California on Aug. 1, 2021

Free Services: Even if you did not make a claim, if you are a member of the Settlement Class, you can still enroll in Identity Defense Services monitoring or take advantage of Restoration Services if you have experienced identity theft or fraud. The settlement provided two years of free credit monitoring through Pango, including TransUnion credit monitoring, monthly credit scores, real-time authentication alerts, dark web monitoring, and $1 million in identity theft insurance.

Payment Distribution Status

The settlement administrator says payments intended to go out in April, but “unexpected delays” pushed them to May of 2025. According to the official settlement website, distribution of settlement payments is expected to begin on May 30, 2025, and as of May 30, 2025, all court proceedings are complete, and the distribution of settlement payments has been completed.

Payments were distributed via:

• Paper checks mailed to claimants
• Digital payment methods (PayPal, prepaid cards)
• Direct deposit (based on claimant selection during the claims process)

According to the claim administrator, only 2 million people actually submitted claims under the T-Mobile settlement program, meaning approximately 74 million eligible individuals did not file claims before the deadline.

Current Status: What Happens Now?

As of May 30, 2025, all court proceedings are complete, and the distribution of settlement payments has been completed. If you filed a claim and did not receive a payment, please reach out to the Settlement Administrator by calling 1-833-512-2314.

For individuals who didn’t file claims but are settlement class members, identity protection services remain available. If you are unsure of whether you are eligible for benefits or need information on how to enroll, visit the FAQs on this Website on this Website or call 1-833-512-2314.

Any money leftover after disbursements will be split across the settlement members or anyone else the court orders, but will not go back to T-Mobile, according to the settlement administrator.

Legal Significance and Industry Impact

This settlement, identified by CNET as the “second-largest data breach settlement in US history,” sends a strong message about corporate data security responsibilities. The Equifax breach settlement of $700 million in 2019 remains the largest.

The case demonstrates several critical precedents:

• Corporations can face massive financial consequences for inadequate cybersecurity
• Class action consolidation through MDL proceedings can efficiently resolve mass data breach claims
• Affected consumers have legal recourse even without documented financial losses
• Companies must invest in cybersecurity infrastructure as part of settlements

How This Compares to Similar Data Breach Settlements

The T-Mobile settlement ranks among the most significant data breach class actions:

The T-Mobile settlement provided higher per-person compensation potential than many previous data breach settlements, with maximum payouts reaching $25,000 for individuals who could document significant losses.

Ongoing Cybersecurity Concerns

Despite the settlement, T-Mobile has faced continuing cybersecurity challenges. Since the 2021 data breach, T-Mobile has faced numerous additional hacker attacks which may have resulted in new data exposure for consumers. In January 2023, T-Mobile disclosed another cyberattack affecting 37 million customers, leading to separate legal proceedings.

The company committed to spending $150 million on cybersecurity improvements as part of the 2021 settlement, implementing measures such as zero-trust architecture and phishing-resistant multi-factor authentication.

Frequently Asked Questions

What is the T-Mobile class action lawsuit from 2021 about?

The lawsuit relates to a data breach that T-Mobile announced on August 16, 2021, where a criminal cyberattack compromised the personal information of approximately 76 million U.S. consumers. Plaintiffs claimed T-Mobile failed to adequately protect customer data, leading to a $350 million settlement.

What data was stolen in the T-Mobile breach?

The breach exposed names, addresses, dates of birth, Social Security numbers, driver’s license numbers, and other personal identification information. No financial information, credit card data, or debit card information was compromised.

How much is the T-Mobile settlement?

T-Mobile agreed to pay $350 million to compensate class members and to invest an additional $150 million in improvements to its data security, for a total commitment of $500 million.

Am I eligible for the T-Mobile settlement?

You were eligible if your information was compromised in the 2021 breach and you submitted a valid claim by January 23, 2023. As of May 30, 2025, all court proceedings are complete, and the distribution of settlement payments has been completed. The claims deadline has passed.

How much compensation can T-Mobile customers receive?

Compensation ranged from $25 (or $100 for California residents) for those without documented losses, up to $25,000 for individuals with proven extraordinary expenses related to identity theft or fraud resulting from the breach.

What is the deadline to claim the T-Mobile settlement?

The deadline for class members to submit a claim was Jan. 23, 2023. No new claims can be filed, as the deadline has passed and payments have been distributed.

When will T-Mobile settlement payments be distributed?

As of May 30, 2025, all court proceedings are complete, and the distribution of settlement payments has been completed. If you filed a claim and haven’t received payment, contact the Settlement Administrator at 1-833-512-2314.

What court approved the T-Mobile settlement?

The case was overseen by Judge Brian C. Wimes of the U.S. District Court for the Western District of Missouri, who granted final approval on June 29, 2023.

Additional Resources and Contact Information

Official Settlement Website: www.t-mobilesettlement.com

Settlement Administrator Contact:

• Phone: 1-833-512-2314
• Email: [email protected]
• Mail: T-Mobile Data Breach Settlement c/o Kroll Settlement Administration LLC, P.O. Box 225391, New York, NY 10150-5391

Class Counsel:

• Keller Rohrback L.L.P.
• Stueve Siegel Hanson
• Hausfeld LLP

For questions about class membership status or claim submission, contact the Settlement Administrator directly at the numbers listed above.

Related Data Breach Class Actions

Concerned about data security and privacy? Learn more about similar cases:

• Can You Sue for Identity Theft? Legal Claims, Damages, Your Rights Explained
• Can You Sue a Bank for Identity Theft? Legal Standards, Consumer Protection Laws, Recent Rulings
• AT&T Hit With $177 Million Class Action Lawsuit: Claim Your Share Before December 18

Disclaimer: This information is for educational purposes only and does not constitute legal advice. Settlement details, eligibility criteria, and compensation amounts may change. Settlement information should be verified through official claim portals at www.t-mobilesettlement.com, review current case filings independently, and contact an attorney for specific questions about this lawsuit or your eligibility. For the most current information, contact the Settlement Administrator at 1-833-512-2314 or visit the official settlement website.

About the Author

Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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