Major Settlement Reached in AT&T Data Breach Cases
Telecommunications provider AT&T has agreed to pay $177 million to settle class action lawsuits stemming from two significant data breaches, according to court documents and settlement administrators. The settlement, which was preliminarily approved by a Texas judge in August, avoids what would have been a lengthy trial process for the telecom giant.
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Breach Timeline and Impact Details
The class action lawsuit consolidated separate cases involving two different security incidents from 2019 and 2024, sources indicate. The 2019 breach, which AT&T reportedly didn’t disclose until 2024, involved personal data of more than 73 million current and former customers, including sensitive information such as Social Security numbers, legal names, and birth dates. This forced the company to reset passcodes for millions of customer accounts.
The second breach occurred in 2024 when hackers allegedly accessed data stored in AT&T’s cloud-based data warehouse, Snowflake. Reports suggest this incident affected approximately 109 million customers, with stolen data including call information, mobile and landline numbers, call and text records, aggregate call duration, and some cell site identification numbers – information that analysts suggest could be sufficient to determine customer identities.
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Settlement Structure and Compensation Tiers
The $177 million settlement is being divided into two distinct compensation tiers, according to the settlement website. The AT&T 1 Settlement Class covers the 2019 breach and is eligible for $149 million of the total payout, while the AT&T 2 Settlement Class addresses the 2024 breach with the remaining $28 million allocation.
Affected customers may qualify for different compensation amounts based on which breach impacted them and their ability to demonstrate documented financial losses. The settlement administrator states that customers affected by the 2019 breach could receive up to $5,000 with proper documentation, while those impacted by the 2024 breach may qualify for up to $2,500.
Claim Process and Documentation Requirements
Kroll Settlement Administration, the firm overseeing the claims process, should notify eligible class members via email, though recipients are advised to monitor spam folders as well. Those who believe they qualify but haven’t received communication can reach out directly through the official settlement website.
Claimants will need a Class Member ID, which should be provided by Kroll through email communication. The claim process can be completed either online through the settlement portal or by mailing completed claim forms. According to reports, claimants have until December 18, 2025, to submit or postmark their claims.
Required documentation varies by breach involvement:
- For the 2019 breach: Proof of documented financial loss directly resulting from the breach
- For the 2024 breach: Documentation supporting claim eligibility
- For overlap claims affecting both breaches: Separate documentation for each incident
Claim Forms and Settlement Details
Customers can access the necessary claim forms through the settlement administrator’s website. The AT&T 1 Claim Form covers the 2019 breach, while the Overlap Claim Form addresses situations where customers were affected by both incidents. Additional information about the settlement process and eligibility requirements is available through the settlement FAQ page.
For customers unable to prove direct financial losses but who still qualify for the settlement, the report states they will receive a pro rata share of the remaining funds, with the actual amount depending on how many people ultimately file claims.
Broader Industry Context
This settlement occurs within the broader telecommunications industry landscape where data security remains a critical concern. The resolution follows standard settlement procedures for class action litigation, with the company making no admission of liability or wrongdoing as part of the agreement.
While AT&T addresses these security concerns through the settlement process, consumers continue to evaluate their mobile device options and smartphone security features in an increasingly connected digital ecosystem that includes devices like the latest mobile technology and premium smartphones from various carriers including mobile providers and devices available through retail channels.
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