AT&T Data Breach Class Action Settlement: $177M Agreement, Claims Up to $7,500 Available

AT&T has agreed to pay $177 million to settle claims related to two significant data breaches that occurred in 2024. Customers affected by these breaches may be eligible to receive compensation, with some individuals potentially receiving up to $7,500 based on the nature of their data exposure and documented financial losses.

The first of these breaches, disclosed on March 30, 2024, exposed sensitive data such as names, addresses, social security numbers, birthdates, account passcodes, billing information, and phone numbers. This information was reportedly released on the dark web. Individuals impacted by this incident may claim up to $5,000 if they can document financial losses resulting from the breach, such as costs linked to identity theft or credit monitoring.

The second breach, announced on July 12, 2024, involved data being illegally downloaded, including information regarding customer interactions with specific phone numbers. Customers impacted by this breach can claim up to $2,500 for documented losses.

For those who do not have concrete proof of financial loss but were affected by the breaches, there are options for flat-rate payments via a tiered system. Customers impacted by the March breach have the option to receive Tier 1 payments if their Social Security numbers were compromised, which are five times the amount of Tier 2 payments available to those affected without SSN exposure. Tier 3 applies to those impacted by the July incident. These flat payments will depend on the number of claims filed after deducting administrative costs from the settlement fund.

A particularly significant aspect of the settlement is for individuals affected by both breaches, who can potentially receive amounts up to $7,500, provided they submit claims documenting losses from each incident. It should be noted that AT&T has denied any wrongdoing in these incidents, yet has decided to resolve the lawsuits through this settlement.

To participate in the settlement, eligible customers must submit a claim online or by mail by November 18, 2025. The claims process requires documentation that supports any financial losses claimed, with the settlement's administrators stipulating that self-prepared documents are inadequate on their own.

The settlement includes a $149 million fund allocated for resolution related to the first breach, while a $28 million fund is designated for those affected by the second breach. Exact payment amounts under the settlement's terms will vary, depending largely on the number of claims filed.

The final hearing on the settlement's approval is scheduled for December 3, 2025. Following the hearing, pending approval, payouts may commence in early 2026.

Eligible customers are encouraged to visit the official settlement website or contact the settlement administrator directly for further assistance in submitting their claims and securing their respective settlements.