AT&T Data Breach Settlement Claim: $177 Million Payouts Await Final Court Approval

AT&T has negotiated a $177 million settlement following two significant data breaches affecting millions of its customers, paving the way for eligible individuals to potentially receive compensation of up to $7,500 each. The first breach, revealed in March 2024, compromised sensitive personal information such as birth dates and Social Security numbers of 73 million current and former AT&T account holders. This data surfaced on the dark web, triggering widespread concern. The second breach, disclosed in July 2024, involved unauthorized access to AT&T's data via a third-party cloud service, impacting the records of calls and texts of nearly all of AT&T's cellular customers.

The incidents led to numerous legal actions across various state and federal courts, which were eventually consolidated into two primary class-action lawsuits. A federal judge ruled in favor of a settlement proposal totaling $177 million, allocating $149 million to those affected by the first breach and $28 million to the second. However, the settlement awaits final court approval, scheduled for a hearing on December 3, 2025, at the U.S. District Court for the Northern District of Texas.

Affected AT&T customers have until November 18, 2025, to file a claim for compensation. To consolidate claims, impacted individuals received notices via email, sent by Kroll Settlement Administration, outlining their eligibility. For those unsure of their qualification, further inquiries can be made by contacting the settlement administrators.

Claims may be submitted via the designated settlement website by completing the necessary forms. Alternatively, submissions can be made by mail. It is crucial for claimants to provide documentation proving their losses are attributable to the data breaches to qualify for higher compensation levels. The potential compensation differs based on the nature and timing of the specific breaches. Customers affected by the March 2024 incident may claim up to $5,000 for losses sustained in 2019 or later. Those impacted by the July 2024 breach can claim up to $2,500 for losses post-April 14, 2024. Individuals affected by both breaches can claim up to $7,500.

The settlement class members, particularly those whose Social Security numbers were exposed in the first breach, are classified as Tier 1, eligible for maximum payouts five times greater than Tier 2 members, whose other data elements were compromised. There is also an option for a pro-rata cash share among claimants affected by the second breach if documentation of specific loss is not available.

Decisive action is necessary for those considering opting out or objecting to the settlement, with the deadline for such decisions set for October 17, 2025. Following the approval of the settlement, there may be delays due to potential appeals, and thus actual payouts are unlikely to commence until early 2026. The settlement’s terms aim to mitigate the impact of the breaches while avoiding admissions of liability or wrongdoing by AT&T.