Telecom giant AT&T has agreed to a massive $177 million settlement to resolve two major data breach lawsuits. The lawsuits stem from widespread data breaches that impacted millions of its current and also its former customers. A United States District Judge, Ada Brown, granted preliminary approval for the settlement terms on Friday, June 20th. While the company denies responsibility for these criminal acts, it opted for the settlement to avoid lengthy legal battles. The settlement funds are split into two parts, one for each of the major data security incidents.
AT&T confirmed these two major data security incidents occurred after the data was found on the dark web.
The first data breach, which began in 2019, exposed the personal information of about 73 million people. This stolen data included names, Social Security numbers, dates of birth, and also private customer account passcodes. The second incident, confirmed last year, began in April 2024 and involved a third-party cloud storage provider. A hacker accessed call and text records from 2022 for nearly all of AT&T’s 109 million US customers.
Both of these data breach incidents led to multiple class-action lawsuits being filed against the telecom company. The lawsuits alleged corporate neglect on AT&T’s part in failing to properly protect its customer data. Current or former AT&T customers whose data was exposed in either breach may be eligible for a payout. Higher payments will go to those who can show clear proof of losses directly caused by the data leaks.
The maximum payment for the 2019 breach is five thousand dollars, with a lower amount for the second breach.
After prioritized payments are made, any remaining funds will be shared among the other impacted AT&T customers. Notifications about eligibility are expected to be sent via email or mail between August and October of 2025. The official process for submitting claims is set to begin on August 4, 2025, with a firm deadline. The final deadline to submit a claim for compensation is set for November 18, 2025, for all customers. A final court hearing for the settlement is scheduled for December 3, with payments expected in early 2026.
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