AT&T Agrees to $177M Settlement After Data Breaches — Who Can Get Up to $7,500

What happened and who’s eligible

AT&T agreed to two cash settlement funds totaling $177 million after multiple customer data exposures were disclosed in 2024. In March 2024 the company said personal information for millions of current and former customers appeared on the dark web. A few months later AT&T reported additional customer data had been unlawfully downloaded in 2022 from a company workspace hosted on a third-party cloud platform.

Those incidents prompted a consolidated class-action lawsuit. While AT&T has denied responsibility for the criminal acts, the company settled to avoid prolonged litigation. In a statement to Business Insider, an AT&T spokesperson said the company settled "to avoid the expense and uncertainty of protracted litigation" and reiterated its commitment to protecting customer data.

Settlement funds and payment options

Two all-cash settlement funds were created:

• $149 million — for customers affected by the first incident ("AT&T 1").
• $28 million — for customers affected by the second incident ("AT&T 2").

Kroll, the independent claims administrator, says eligible people fall into two classes: the AT&T 1 Settlement Class and the AT&T 2 Settlement Class. Some people may be in both classes ("overlap settlement class members") and could receive combined payments up to $7,500.

How much you can claim

• AT&T 1 members: Eligible claimants may seek a Document Loss Cash Payment of up to $5,000 for documented losses occurring in 2019 or later that are fairly traceable to the AT&T 1 incident. As an alternative, claimants may elect a Tier 1 or Tier 2 payment (a pro rata share of the AT&T 1 Net Settlement Fund).
• AT&T 2 members: Eligible claimants may seek a Documented Loss Cash Payment of up to $2,500 for losses on or after April 14, 2024, or may elect a Tier 3 pro rata payment from the AT&T 2 Net Settlement Fund.

Deadlines and next steps

Submitting a claim is the only way for a settlement class member to receive money. Kroll’s notices list both December 17 and December 18 as filing dates in different places; to avoid missing the deadline, check Kroll’s official claims site for the exact final date and submit your claim as soon as possible. Kroll is administering the claims process and will validate submissions before distributing payments once the court grants final approval.

If you prefer to retain the right to sue AT&T separately, you must opt out of the settlement by November 17. Otherwise, remaining in the class means you receive any settlement payment but give up the right to pursue separate litigation on the same claims.

The United States District Court for the Northern District of Texas has scheduled a final approval hearing for the settlement on January 15, 2026.

What you should do now

• Check Kroll’s official settlement website to confirm whether you were notified and to view the exact claim deadline and required documentation.
• Gather documentation if you intend to seek a Document Loss Cash Payment (records of financial loss, identity theft reports, bills, or other proof linking losses to the incidents).
• If you have legal questions or consider opting out, consult an attorney to understand the implications.

Note: Notices vary in listing Dec. 17 or Dec. 18 as the final claims date — verify the deadline on Kroll’s site to be safe.