AT&T has agreed to pay out a whopping $177 million to settle two major data breaches that affected millions of customers. The settlement is the latest move in a long-running saga that has seen several lawsuits emerge across the US, which were later consolidated due to their similarities.
The first breach occurred in March 2024 and involved customer information dating back to 2019, with leaked data including sensitive info like Social Security numbers and passcodes. This breach affected around 7.6 million current and 65.4 million former AT&T account holders. The second breach was even more extensive, involving call and text records of nearly all AT&T customers from May to October 2022, as well as a small subset from January 2023.
According to the terms of the settlement, eligible consumers have until December 18 to file for a payment, which will need to be approved by a judge early next year. The cash funds are divided into two classes, with the first class receiving up to $149 million and the second class getting an additional $28 million. Consumers affected by the first breach may receive up to $5,000, while those impacted by the second breach may get up to $2,500.
The catch is that final payment amounts will vary depending on losses documented from each individual, as well as the total number of claims received and added costs like attorney fees. The court still has to give the settlement its final stamp of approval in a hearing currently scheduled for January 15, 2026.
AT&T has maintained that it took adequate measures to protect customer data but acknowledged that "protracted litigation" would be too costly and uncertain. With over a month left to file a claim, consumers have a deadline to act if they want to receive their share of the settlement funds.
The first breach occurred in March 2024 and involved customer information dating back to 2019, with leaked data including sensitive info like Social Security numbers and passcodes. This breach affected around 7.6 million current and 65.4 million former AT&T account holders. The second breach was even more extensive, involving call and text records of nearly all AT&T customers from May to October 2022, as well as a small subset from January 2023.
According to the terms of the settlement, eligible consumers have until December 18 to file for a payment, which will need to be approved by a judge early next year. The cash funds are divided into two classes, with the first class receiving up to $149 million and the second class getting an additional $28 million. Consumers affected by the first breach may receive up to $5,000, while those impacted by the second breach may get up to $2,500.
The catch is that final payment amounts will vary depending on losses documented from each individual, as well as the total number of claims received and added costs like attorney fees. The court still has to give the settlement its final stamp of approval in a hearing currently scheduled for January 15, 2026.
AT&T has maintained that it took adequate measures to protect customer data but acknowledged that "protracted litigation" would be too costly and uncertain. With over a month left to file a claim, consumers have a deadline to act if they want to receive their share of the settlement funds.