AT&T Offers $177 Million Settlement to Data Breach Victims – How to Claim Your Compensation

AT&T has announced a $177 million settlement to compensate customers whose data was exposed in two separate breaches last year. Millions of AT&T users could receive up to $7,500 depending on which breach affected them. The settlement deadline is December 18, so eligible customers must act quickly.

Why the Lawsuit

Both data breaches occurred in 2024 and involved data belonging to millions of current and former AT&T customers dating as far back as 2019 or earlier. The first incident happened on March 30, 2024, when AT&T reported that addresses, social security numbers, birthdates, passcodes, billing numbers and phone numbers were released on the dark web. The second breach covered call and text records of nearly all AT&T customers from May through October 2022, plus a small subset from January 2, 2023. AT&T learned in April that data was illegally downloaded from its workspace on a third‑party cloud platform and began notifying customers in July 2024.

Settlement Overview

AT&T opted to settle earlier this year, stating, “We have agreed to this settlement to avoid the expense and uncertainty of protracted litigation,” and adding that the company remains “committed to protecting our customers’ data and ensuring their continued trust in us.” The settlement totals $177 million and is administered by Kroll Settlement Administration.

Eligibility

Customers affected by either or both data breaches are eligible to file a claim. To check eligibility, visit the settlement website and submit your class member ID, email address, AT&T account number or full name. If you did not receive a confirmation code and notice ID, call Kroll Settlement Administration at 833-890-4930 for assistance.

Filing Process

Eligible customers can file a claim online at www.telecomdatasettlement.com. After submitting the required identifying information, additional documentation will be requested. Claims can also be mailed to:

AT&T Data Incident Settlement,

c/o Kroll Settlement Administration LLC,

P.O. Box 5324, New York, NY 10150-5324.

Deadline

The deadline to submit a claim is Thursday, Dec. 18. Online forms must be submitted by that date, and mailed claims must be postmarked by the deadline.

Payout Amounts

Those impacted by the March breach may receive up to $5,000, while those affected by the July breach may collect up to $2,500. Customers who are an “overlap settlement class member”—impacted by both breaches—may receive up to $7,500.

Tier Breakdown

• Tier 1 Cash Payment (March breach): Members whose Social Security Number was included in the March incident can claim a Tier 1 Cash Payment, which is five times the amount of a Tier 2 Cash Payment.
• Tier 2 Cash Payment (March breach): Members whose data elements were included in the March incident but not their SSN can claim a Tier 2 Cash Payment.
• Tier 3 Cash Payment (July breach): As an alternative to a Documented Loss Cash Payment, account owners may submit a Claim for a Tier 3 Cash Payment. This payment is a pro‑rata share of the July incident cash remaining after settlement administration costs, attorneys’ fees, costs, and service awards. The net settlement amount available for distribution is currently unknown and will depend on the costs and the number of valid claims.

Key Takeaways

• AT&T’s $177 million settlement covers two 2024 data breaches affecting millions of customers.
• Eligible customers can claim up to $7,500 if impacted by both breaches; otherwise up to $5,000 or $2,500.
• Claims must be filed online or by mail before December 18.

The settlement offers a significant payout to victims of AT&T’s data breaches, but only those who meet the eligibility criteria and file before the deadline will receive compensation.