T-Mobile US, Inc. (TMUS) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that T-Mobile US, Inc. surfaced in its latest filing.

• In August 2021, the company disclosed a criminal cyberattack that compromised data of millions of customers, including social security numbers, names, addresses, dates of birth, and driver's license/identification numbers.August 2021
• In January 2023, a bad actor obtained data through an unauthorized API for approximately 37 million current postpaid and prepaid customer accounts, including name, billing address, email, phone number, date of birth, T-Mobile account number, and plan features.January 2023
• The company spent $304 million and won over 90% of the 2.5GHz licenses in Auction 108.
• DISH receives network services under a seven-year Master Network Services Agreement (MNSA).
• DISH agreed to purchase Sprint's 800 MHz spectrum (approximately 13.5 MHz) for $3.6 billion under a License Purchase Agreement.
• Under the LPS Amendment, if DISH fails to purchase spectrum by April 1, 2024, its sole liability is a $100 million non-refundable extension fee.April 1, 2024
• FCC updated transparency obligations to require nutrition-style broadband label disclosures in 2024.2024
• The August 2021 cyberattack resulted in consolidated class action lawsuits, mass consumer arbitrations, a shareholder derivative lawsuit, and government inquiries.August 2021
• On July 22, 2022, the company agreed to settle the consolidated class action lawsuit related to the August 2021 cyberattack, with a $350 million payment and $150 million incremental data security spend.July 22, 2022
• On June 29, 2023, the Court granted final approval of the settlement related to the August 2021 cyberattack, which is subject to potential appeals.June 29, 2023
• The company received a Notice of Apparent Liability for Forfeiture and Admonishment from the FCC on February 28, 2020, alleging violations of Section 222 of the Communications Act and the FCC's privacy regulations.February 28, 2020
• The company recorded an accrual for the estimated FCC payment amount as of March 31, 2020.March 31, 2020
• The company recorded a total pre-tax charge of approximately $400 million during the three months ended June 30, 2022 for the class action settlement and other settlements of consumer claims related to the August 2021 cyberattack.June 30, 2022
• The company is subject to a putative shareholder class action and derivative lawsuit in connection with the Transactions.
• The company is subject to a putative antitrust class action in connection with the Transactions.
• DT and SoftBank are parties to the SoftBank Proxy Agreement dated April 1, 2020, under which SoftBank shares are voted as directed by DT.April 1, 2020
• On September 6, 2023, the Board authorized a $19.0 billion stockholder return program through December 31, 2024.September 6, 2023
• The company licenses the 'T-Mobile' trademark from DT under an amended agreement, paying a royalty of 0.25% of net revenue from licensed products/services, capped at $80 million per calendar year through December 31, 2028.December 31, 2028
• Colorado, Connecticut, Utah, and Virginia privacy laws went into effect in 2023.2023