AT&T Settles Data Breach for $177M; Claims Deadline Dec. 18

UPDATE: AT&T has announced a staggering $177 million settlement due to two significant data breaches affecting millions of customers. Time is of the essence: impacted consumers have until December 18, 2024, to file claims and receive compensation for their losses.

The breaches, which compromised sensitive data including Social Security numbers and call records, have led to a wave of lawsuits across the U.S. These lawsuits were consolidated after AT&T revealed that customer information had been exposed, prompting allegations that the telecom giant “repeatedly failed” to safeguard consumer data. Although AT&T denies any wrongdoing, it chose to settle in order to avoid lengthy litigation. “We have agreed to this settlement to avoid the expense and uncertainty of protracted litigation,” AT&T stated Thursday, emphasizing its commitment to protecting customer data.

The first breach, disclosed in March 2024, involved the leak of data from 7.6 million current and 65.4 million former customers, with information dating back to 2019 or earlier. This data was reportedly found on the “dark web” weeks before AT&T’s announcement. The second breach involved call and text records of nearly all AT&T customers from May through October 2022, as well as a limited subset from January 2, 2023. AT&T revealed this data was “illegally downloaded” from a third-party cloud platform, with notifications sent to affected customers starting in July 2024.

The settlement funds are divided into two classes: $149 million for the first group and $28 million for the second. Customers impacted by the first breach may claim up to $5,000, while those affected by the second breach could receive up to $2,500. Some individuals may qualify for payments from both funds, depending on their documented losses and the total number of claims received. Importantly, the court is set to finalize the settlement in a hearing scheduled for January 15, 2026.

Consumers are urged to act quickly, as the deadline to file claims is just over a month away. Claims can be submitted online or by mail via the Kroll Settlement Administration website. Additionally, class members can opt-out or raise objections before November 17, 2024.

This development is critical for consumers who have been affected by the breaches, highlighting the ongoing risks associated with data security in the telecommunications sector. As AT&T continues to navigate these challenges, customers are encouraged to stay informed and act swiftly to secure their rightful compensation.