AT&T is set to begin disbursing payments from a substantial $177 million settlement in 2026, following a class action lawsuit that alleged multiple breaches of customer data. Customers affected by these incidents could receive up to $7,500, depending on their individual circumstances and the number of claims filed.
The lawsuits stemmed from two significant breaches; the first occurred on March 30, 2024, when sensitive customer information such as social security numbers, addresses, birthdates, and other personal details were reportedly released on the dark web. The second incident took place on July 12, 2024, during which limited data was illegally downloaded, encompassing information linked to customer phone interactions.
AT&T settled these federal lawsuits without admitting liability or wrongdoing. The settlement categorizes eligible customers into two classes. The AT&T 1 Settlement Class includes those whose data from the March breach was compromised and may receive up to $5,000 based on the nature of their losses. Individuals are eligible for different payment tiers based on whether their sensitive information, specifically their Social Security number, was affected.
The AT&T 2 Settlement Class is composed of current and former customers affected by the July breach, with potential payouts of up to $2,500. Similar to the first class, claimants must provide documentation of their losses.
The deadline to file a claim is approaching quickly, with the online submission required by December 18, 2025. Paper claims must be postmarked by that date as well. Individuals wishing to exclude themselves from the settlement or object must submit their documents by November 18, 2025.
Although the settlement site does not currently provide a specific timeline for when the payments will be distributed, it is contingent upon the final approval from a federal judge, previously scheduled for a hearing on January 15, 2026.
This settlement provides a measure of relief for those affected by data breaches, underscoring the importance of data security and accountability in the telecommunications industry.