AT&T Class-Action Settlement Update: Data Breach Claims Processing

AT&T customers involved in a $177 million class-action settlement related to two data breaches are progressing towards potential payouts. The settlement, which encompasses incidents disclosed in 2024, is currently awaiting final court approval. A hearing for this approval was held on January 15, and claims are being processed while the court deliberates. Distribution of funds will commence only after the court's approval and the resolution of any appeals.

Newsweek

The settlement addresses two separate breaches. The first incident, announced in March 2024, involved AT&T-specific data from 2019 or earlier being found on the dark web. This breach reportedly affected approximately 7.6 million current and 65.4 million former account holders, with personal identifiers such as names, addresses, phone numbers, emails, and Social Security numbers compromised.

Newsweek

The second breach, disclosed in July 2024, involved the illegal downloading of certain call and text records from a third-party cloud platform, impacting nearly all cellular customers during parts of 2022 and 2023.

Newsweek

Eligibility for the settlement is determined by two classes corresponding to the respective breaches. Individuals whose personal information was part of the March 2024 dark-web leak or whose call/text records were involved in the July 2024 incident are eligible to claim benefits. Some customers may qualify for both classes. The deadline for filing claims was December 18, 2025, and claims are no longer being accepted.

Newsweek

AT&T has not admitted liability in connection with these breaches but agreed to the settlement to resolve the consolidated lawsuits. Customers affected by the March breach can seek up to $5,000, while those impacted by the July breach may claim up to $2,500, with a combined maximum of $7,500 for individuals eligible in both classes. The settlement fund allocates $149 million for the dark-web breach and $28 million for the cloud-platform incident.

Newsweek

The settlement website has indicated that the distribution of benefits will begin once the court approves the settlement, all appeals are resolved, and claim forms have been reviewed. Updates will be provided on the settlement website as new information becomes available.

Newsweek

While AT&T has opted for a settlement, some critics argue that the company should be held accountable for the breaches and the potential risks posed to customer data. Concerns have been raised regarding the adequacy of the compensation relative to the scale of the breaches and the personal impact on affected customers.

Newsweek

“Distribution of Settlement Class Member Benefits will begin after the Settlement has obtained Court approval, the time for all appeals has expired, and all Claim Forms have been reviewed,” — AT&T Settlement Website

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