T-Mobile will fork over $60 million to settle allegations it failed to disclose and take action against data leaks that occurred after its merger with Sprint in 2020, according to multiple outlets, marking the largest fine ever imposed by the Committee on Foreign Investment in the U.S.
T-Mobile’s alleged failure to disclose the data breaches at the center of the fine violated a national security agreement required for the company’s $26 billion merger with Sprint, The Wall Street Journal reported, citing unnamed senior U.S. government officials.
T-Mobile allegedly failed to address breaches of sensitive data and did not report some of the leaks promptly, both of which violated the agreement, according to The Wall Street Journal, which noted the violations delayed CFIUS’ efforts to address potential harm to national security assets caused by the breaches.
A spokesperson for the telecommunications company told Forbes in an email it experienced technical issues while integrating with Sprint that impacted information shared from law enforcement information requests.
CFIUS does not usually name companies at the center of its violation disputes, making its settlement with T-Mobile a rare one that may put other large companies on notice to fulfill their contractual obligations, Reuters reported, citing an unnamed U.S. official.
