AT&T reaches $177M settlement in data breach lawsuits

AT&T has agreed to a proposed $177 million settlement to resolve lawsuits over data breaches in 2019 and 2024 that exposed customer information.
AT&T has agreed to a proposed $177 million settlement to resolve lawsuits over data breaches in 2019 and 2024 that exposed customer information. Photo credit Photo by Ronald Martinez/Getty Images

Current and former AT&T customers whose data was compromised in the company’s 2019 or 2024 data breaches may soon be eligible for compensation under a proposed $177 million class-action settlement.

The settlement, which received preliminary approval from a federal judge in June, aims to resolve two lawsuits tied to the breaches. Individual payouts could reach up to $5,000 for those affected by the 2019 breach and up to $2,500 for those impacted by the 2024 incident — if they can show damages “fairly traceable” to the leaks.

Dallas-based AT&T confirmed the first breach last year after customer data, including names, Social Security numbers and birth dates, surfaced on the dark web. That breach, which began in 2019, exposed data belonging to about 7.6 million current and 65.4 million former account holders.

The second breach, discovered in April 2024, involved a compromise of AT&T’s cloud storage provider, Snowflake. Hackers accessed 2022 call and text records for approximately 109 million U.S. customers, though AT&T said no names were linked to the stolen data. Two people were arrested in connection with that breach.

The settlement prioritizes payments for customers who can prove direct harm from either breach. Any remaining funds will be distributed to all affected users, regardless of documented damages. AT&T has denied any responsibility, calling the breaches “criminal acts.”

Notices will be sent to eligible individuals by email or mail in the coming months, with the claims process expected to begin Aug. 4.

The deadline for submitting a claim is currently set at Nov. 18, 2025. The final approval of the settlement needs to be given at a Dec. 3, 2025, court hearing for payments to begin.

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Featured Image Photo Credit: Photo by Ronald Martinez/Getty Images