There’s 1 week left to join AT&T’s $177 million settlement over data breaches. Here’s who qualifies.
AT&T customers who have been affected by recent data breaches may have a chance to receive compensation through a class-action lawsuit that has resulted in a significant settlement. The telecommunications giant has agreed to pay a total of $177 million to customers whose personal information was compromised in two separate incidents. The first breach involved the exposure of sensitive data belonging to millions of customers, including names, addresses, and Social Security numbers, which was later found on the dark web. The second breach, which occurred in 2022, involved the unauthorized downloading of customer data from a third-party cloud platform. Although AT&T denies any wrongdoing, the company has opted to settle to avoid the costs and uncertainties associated with prolonged litigation.
Eligible customers can file claims until December 18, 2023, with potential payouts reaching up to $7,500. The settlement is divided into two categories: the AT&T 1 Settlement Class, which pertains to those affected by the first breach, and the AT&T 2 Settlement Class, related to the second incident. Customers in the AT&T 1 class can claim a Document Loss Cash Payment of up to $5,000 for losses incurred since 2019, or opt for a pro rata share of the settlement fund. Those in the AT&T 2 class can receive up to $2,500 for losses that occurred after April 14, 2024. Furthermore, some customers may qualify for both classes, enabling them to claim a total of $7,500.
As the deadline approaches, it is crucial for affected individuals to submit their claims promptly. AT&T has taken steps to notify customers whose information was compromised, and Kroll, the third-party administrator managing the settlement, is available to assist with the claims process. A final approval hearing for the settlement is scheduled for January 15, 2026, in the United States District Court for the Northern District of Texas. This settlement underscores the importance of data security and the potential consequences for companies that fail to protect personal information. Customers are encouraged to take action and ensure they receive any compensation they may be entitled to as a result of these breaches.
Some AT&T customers may be eligible to file a claim for compensation as part of a class-action lawsuit.
Jakub Porzycki/NurPhoto
AT&T has experienced multiple data breaches in recent years, prompting a class-action lawsuit.
The company agreed to pay affected AT&T customers $177 million as part of a settlement.
The deadline to submit a claim and join the settlement is December 18.
If you were one of the tens of millions of AT&T customers whose personal data was leaked online in recent years, you could be eligible for up to $7,500 as part of a settlement.
The company revealed in March 2024 that information belonging to millions of current and past customers had been leaked on the
dark web
. Four months later, AT&T said additional customer data had been
illegally downloaded
from a company workspace on a third-party cloud platform back in 2022.
Both incidents spurred lawsuits against AT&T, which has denied any wrongdoing.
Affected customers filed a consolidated class-action suit against the company in May. Two months later, AT&T agreed to establish two settlement funds totaling $177 million: a $149 million all-cash fund for customers affected by the first data breach and a $28 million all-cash payment for customers affected by the second data incident.
“While we deny the allegations in these lawsuits that we were responsible for these criminal acts, we have agreed to this settlement to avoid the expense and uncertainty of protracted litigation,” an AT&T spokesperson told Business Insider. “We remain committed to protecting our customers’ data and ensuring their continued trust in us.”
The deadline for eligible customers to submit a claim and receive settlement money is one week away. Here’s what affected AT&T customers need to know.
Who qualifies?
Kroll
, a third party that manages class action settlements, said that eligible AT&T customers fall under two categories: AT&T 1 Settlement Class and AT&T 2 Settlement Class.
AT&T 1 Settlement Class refers to people living in the United States whose data — including names, addresses, telephone numbers, email addresses, birth dates, passcodes, billing account numbers, and Social Security numbers — were included in the first leak.
The AT&T 2 Settlement Class refers to any customers whose data was involved in the second leak, which could include information like phone numbers with which customers interacted and other data related to those interactions, such as the duration of calls or the number of times those numbers were contacted.
If your information was part of either breach, AT&T would have contacted you.
How much money could AT&T customers receive as part of the settlement?
Within the AT&T 1 Settlement Class, customers can submit a claim for a “Document Loss Cash Payment” of up to $5,000 for losses that happened in 2019 or later, “upon presentation of documentation that the losses are fairly traceable to the AT&T 1 Data Incident.”
They also qualify for a Tier 1 or Tier 2 cash payment, which is an alternative to the Document Loss Cash Payment and represents a pro rata share of the AT&T 1 Net Settlement Fund cash.
Under the AT&T 2 Settlement Class, customers are eligible for a Documented Loss Cash Payment of up to $2,500 for losses that happened on or after April 14, 2024. The Tier 3 cash payment is a pro rata share of the AT&T 2 Net Settlement Fund cash.
Kroll said some customers may be an “overlap settlement class member,” so they could walk away with a total of $7,500.
When is the deadline for submitting a claim?
Customers have until December 18 to submit a claim. Submitting a claim is the only way a settlement class member can receive a payment.
The United States District Court for the Northern District of Texas will hold a final approval hearing for the settlement on January 15, 2026.
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