The $79 million attorneys’ fee awarded as part of T-Mobile US Inc.’s $350 million settlement in a data breach lawsuit has been overturned by a federal appeals court. The US Court of Appeals for the Eighth Circuit ruled that the lower court had abused its discretion by approving such a substantial fee for attorneys, especially given that the case settled swiftly and without extensive discovery or motions practice.
The litigation stemmed from a 2021 incident that exposed the data of 76.6 million T-Mobile customers. The original settlement aimed to resolve these data breach claims, but the fee awarded to class counsel was seen as disproportionately high. The appeals court reversed the fee, remanded the decision, and acknowledged the objection raised by Cassie Hampe while maintaining the ruling against Connie Pentz’s objection.
This decision sends a message to the legal community about the scrutiny and oversight required when approving attorney fees in class action settlements. For more details on this reversal, you can read the full report on Bloomberg Law.