AT&T Data Breach Settlement: What You Need to Know
AT&T has agreed to a $177 million settlement following two massive data breaches that compromised the sensitive information of millions of current and former customers. A U.S. judge granted preliminary approval for the class-action settlement on June 20, 2025, paving the way for potential payouts to victims of the AT&T data breach settlement.
What Happened in the AT&T Data Breaches?
Two major breaches prompted the legal action. In 2019, personal information from over 65 million former customers was exposed on the dark web. In a separate and more recent incident reported in March 2024, the data of nearly all AT&T cellular customers—including call and text message records from 2022—was compromised through a breach in AT&T’s workspace on a Snowflake third-party cloud platform.
The breaches included sensitive customer data such as addresses, Social Security numbers, and security passcodes, raising concerns over identity theft and privacy.
Payouts in the AT&T Data Breach Settlement
As part of the AT&T data breach settlement, the telecom giant will establish two separate funds to compensate affected customers:
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$149 million for those impacted by the 2024 data breach
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$28 million for individuals affected by the 2019 breach
Eligible customers may claim up to $2,500 or $5,000 for losses “fairly traceable” to the incidents, depending on which breach impacted them. After those claims are processed, remaining funds will be divided among individuals whose personal data was accessed, even if they didn’t incur financial losses.
AT&T maintains that it was not responsible for the criminal breaches but chose to settle in order to avoid prolonged litigation and additional legal costs.
AT&T Data Breach Settlement Timeline and Claims Process
The official notification program for the settlement begins on August 4, 2025, and will conclude by October 17, 2025.
Here are the key dates:
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Claim submission deadline: November 18, 2025
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Final court approval hearing: December 3, 2025
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Expected payout date: Early 2026, according to AT&T’s statement to Reuters
Customers will be notified about their eligibility and how to file claims. Claim forms and detailed instructions will be provided via mail or email and will be available on the settlement website once launched.
AT&T’s Response to the Breach Allegations
AT&T has denied wrongdoing, stating it was not responsible for the “criminal acts” that led to the breaches. In a statement, the company explained:
“We have agreed to this settlement to avoid the expense and uncertainty of protracted litigation.”
While AT&T attempts to move past the scandal, the incident raises fresh concerns about data security and customer trust in the digital age.
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