AT&T Settles Data Breach Lawsuits for $177 Million, Customers May Receive Up to $5,000
The settlement resolves claims that AT&T failed to adequately protect customer data in two separate breaches in 2024.
AT&T customers affected by two data breaches in 2024 may be eligible to receive a portion of a $177 million class-action settlement. The telecom giant agreed to the settlement, which received final court approval on October 2, to resolve lawsuits alleging that the company failed to safeguard customer data.
If no appeals are filed, the settlement is expected to become effective on November 12, with payouts to claimants due within 60 days. Affected individuals can check their claim status or find updates on the official settlement portal at telecomdatasettlement.com or by calling 833-890-4930.
Settlement Details
The $177 million sum is divided between two incidents. A March 2024 breach resulted in a $149 million settlement, while a July 2024 breach accounts for $28 million in damages. The breaches compromised sensitive information, including Social Security numbers, addresses, and account passcodes, impacting over 7.6 million active account holders and 65.4 million former customers.
Under the terms of the settlement, individuals who can document out-of-pocket losses linked to the March breach may receive up to $5,000. Alternatively, they can opt for a tiered cash payout. Tier 1 payments are designated for individuals whose most sensitive information, such as Social Security numbers, was exposed, and these recipients do not need to provide proof of financial loss if their data leak is documented.
The July incident involved compromised call and text interaction logs from a third-party cloud platform. Customers affected by this breach may claim up to $2,500 for proven losses. Nearly all customers were reportedly impacted by this second data breach.
Allegations and Impact
Court filings indicate that some victims experienced severe consequences from identity theft, including drained bank accounts and fraudulent loans taken out in their names. AT&T's statements acknowledged that it was unclear whether the leaked data originated from the company or one of its vendors.
The July breach was reportedly due to data illegally downloaded from AT&T's workspace on a third-party cloud platform, identified in public reports and congressional letters as Snowflake. AT&T has not confirmed the origin of the March breach's data leak.
Claim Process and Payouts
More than 4.9 million claims were submitted for the settlement, with 3 million claims approved. Approximately 1.1 million claims were rejected due to reasons such as being late, duplicate, fraudulent, released, withdrawn, or ineligible.
Class members who submitted valid claims by the December 18, 2025, deadline are expected to receive payments by the end of 2026. AT&T agreed to the settlement to avoid further litigation but did not admit to any wrongdoing.