AT&T Agrees to $177M Payout in Data Breach Case; Kroll Settlement Administration ATT Manages Claims

AT&T has agreed to a $177 million settlement arising from two substantial data breaches announced in 2024. The settlement, which still requires judicial approval scheduled for December 2025, aims to address claims from affected customers by establishing two distinct compensation funds. The breaches, disclosed on March 30, 2024, and July 12, 2024, respectively, exposed sensitive customer information, including Social Security numbers, birth dates, and phone records, affecting nearly 200 million users.

The first breach, referred to as the "AT&T 1 Data Incident," affected 7.6 million current and 65.4 million former customers, with potential payouts reaching up to $5,000 for documented losses. In contrast, the second breach, the "AT&T 2 Data Incident," exposed data related to phone records from 2022, potentially affecting 109 million customers, with imposed compensation up to $2,500. Customers involved in both incidents, known as "Overlap Settlement Class Members," may be eligible to claim up to $7,500.

The settlement comes after AT&T's decision to pay $177 million to resolve the allegations without admitting any wrongdoing. The settlement segment for the first data breach is valued at $149 million, while the second is set for $28 million.

Customers eligible for compensation include current or former AT&T users whose data was accessed during the breaches announced on March 30 and July 12, 2024. Affected individuals can file claims via the website managed by Kroll Settlement Administration, which began accepting claims on August 4, 2025.

To file a claim, affected AT&T customers need to provide a Class Member ID, along with their full name, AT&T account number, and their email address. Those without notification can contact Kroll Settlement Administration at (833) 890-4930. For customers choosing to opt out to retain the right to independently sue AT&T, the deadline is October 17, 2025. All claims must be submitted or postmarked by November 18, 2025.

Upon claims submission, affected AT&T customers are agreeing to waive the right to pursue separate legal action for matters related to the data incidents. Payouts will be distributed only after the court’s final approval in December 2025, subject to potential appeals which could lead to delays.

The settlement was reached with the coordination of legal teams representing the plaintiffs, consolidating multiple lawsuits nationwide in response to the disclosure of the data incidents, which led AT&T to enforce more stringent security protocols without admitting liability or fault.

Kroll Settlement Administration, the appointed administrator for the settlement, has begun accepting claims as of August 4, 2025. Customers must ensure they file claims by the deadline to receive any compensation from the settlement.