In a recent development, the fees charged by lawyers for representing victims of the 2021 T-Mobile data breach are under scrutiny in a US appeals court.
Last year, T-Mobile agreed to a $350 million settlement to resolve the lawsuit filed by victims of the data leak, which exposed sensitive information like names, addresses, and social security numbers of an estimated 76.6 million T-Mobile customers.
The settlement was intended to cover claims from class members, legal fees, and administrative costs. Class members were slated to receive $25 each, or $100 if they were from California. Some individuals could even receive up to $25,000 for out-of-pocket losses.
However, lawyers representing the plaintiffs who initiated the lawsuit requested a staggering $78 million in legal fees. This request has sparked objections from some attorneys who believe it constitutes an excessive portion of the $350 million fund.
Attorney Robert Clore expressed concern over the discrepancy in compensation, stating, “My client gets 25 bucks and these attorneys are walking away with $7,000 to $10,000 per hour.”
A judge in Kansas City allocated 22.5 percent of the fund to class lawyers despite objections from challengers at a lower court. During a recent hearing, both sides presented their arguments as the judges assessed whether objections were made in “bad faith” or based on genuine concerns.
In related news, John Binns—responsible for the data breach—has been apprehended in Turkey and faces extradition to the US. Binns allegedly infiltrated T-Mobile systems last year and attempted to secure Turkish citizenship to evade extradition efforts by US authorities.
The ongoing legal battle underscores the complexities surrounding data breaches and emphasizes the importance of fair compensation for affected individuals while holding perpetrators accountable for their actions. Stay tuned for further updates on this evolving story.
