AT&T Reaches $177M Data Breach Settlement

Consumers have until December to file claims

AT&T has agreed to a $177 million settlement following two major data breaches that exposed sensitive customer information. The settlement comes after multiple lawsuits across the U.S. were consolidated, with plaintiffs alleging the company failed to adequately protect consumer data. While AT&T denies wrongdoing, it said the agreement avoids the expense and uncertainty of prolonged litigation. Impacted customers now have until December 18 to submit claims for compensation.

Details of the Breaches

The settlement covers two separate incidents disclosed in 2024. The first involved data from 2019 or earlier that was discovered on the dark web, affecting 7.6 million current and 65.4 million former account holders. Leaked information included Social Security numbers and passcodes. The second breach involved call and text records from May to October 2022, plus a small set from January 2023, which were illegally downloaded from a third-party cloud platform.

AT&T began notifying customers in July 2024 after investigating the second breach. The company emphasized that while phone numbers were exposed, the content of calls and texts was not compromised. Both breaches triggered lawsuits that were later consolidated in U.S. District Court in Texas. The settlement was reached earlier this year.

Compensation and Eligibility

The settlement allocates $149 million for the first group of affected customers and $28 million for the second. According to the settlement administrator, individuals impacted by the first breach may be eligible for up to $5,000. Those affected by the second breach could receive up to $2,500. Consumers who fall into both categories may qualify for payments from both funds.

Final amounts will depend on documented losses, the number of claims filed, and deductions for attorney fees. A judge must still give final approval, with a hearing scheduled for January 15, 2026. Until then, payments remain provisional. The settlement administrator’s website provides detailed instructions for filing claims.

Deadlines and Next Steps

Consumers must file claims online or by mail by December 18. Those wishing to opt out or object to the settlement had until November 17. The administrator, Kroll Settlement Administration, is handling the process and providing updates. AT&T has stated it remains committed to protecting customer data and rebuilding trust.