AT&T agreed to two all-cash settlement funds totaling $177 million after two data breaches exposed millions of customers' records. Eligible victims fall into two classes with documented-loss awards up to $5,000 (AT&T 1) and $2,500 (AT&T 2); overlap claimants could collect up to $7,500. Claims must be filed by December 18, and a final court hearing is scheduled for January 15, 2026. Kroll is the settlement administrator handling claims.
One Week Left to Claim From AT&T’s $177M Data-Breach Settlement — Who Qualifies
Some AT&T customers may be eligible to file a claim for compensation as part of a class-action lawsuit.Jakub Porzycki/NurPhoto
AT&T has agreed to pay a total of $177 million to resolve class-action claims after two separate data-security incidents exposed millions of customers' personal information. Eligible customers must file a claim by December 18 to receive any payment.
What Happened
AT&T disclosed two major incidents: first, a March 2024 disclosure that information belonging to millions of current and former customers appeared on the dark web; and second, an earlier incident involving data that was illegally downloaded from a company workspace on a third-party cloud platform in 2022. The incidents prompted consolidated class-action litigation filed in May.
The Settlement
In July, AT&T agreed to create two all-cash settlement funds totaling $177,000,000: a $149,000,000 fund for customers affected by the first incident (AT&T 1) and a $28,000,000 fund for customers affected by the second incident (AT&T 2). AT&T has denied wrongdoing but said it agreed to the settlement to avoid the expense and uncertainty of continued litigation.
Who Is Eligible
The independent settlement administrator, Kroll, says eligible customers fall into two groups:
- AT&T 1 Settlement Class: U.S. residents whose data from the first leak included items such as names, addresses, phone numbers, email addresses, birth dates, passcodes, billing account numbers, or Social Security numbers.
- AT&T 2 Settlement Class: Customers whose information was involved in the second incident, which may include phone numbers used in interactions and related metadata (for example, call duration or the number of times a number was contacted).
How Much You Could Receive
Payments depend on the class and whether you document actual losses:
- AT&T 1: Documented Loss Cash Payment up to $5,000 for losses in 2019 or later that are fairly traceable to the AT&T 1 incident. Alternatively, claimants may elect a Tier 1 or Tier 2 pro rata share of the AT&T 1 Net Settlement Fund.
- AT&T 2: Documented Loss Cash Payment up to $2,500 for losses on or after April 14, 2024, or a Tier 3 pro rata share of the AT&T 2 Net Settlement Fund.
- Some people qualify for both classes as "overlap settlement class members" and could receive up to a combined $7,500.
How To Claim
You must submit a claim by December 18 to receive payment; submitting a claim is the only way settlement class members will get money. AT&T says it has notified customers whose information was involved. Kroll is handling claims and administration for the settlement.
Next Steps And Court Approval
The United States District Court for the Northern District of Texas will hold a final approval hearing on January 15, 2026. If you think you were affected but did not receive a notice, check any correspondence from AT&T or contact the settlement administrator for guidance on eligibility and the claims process.
"While we deny the allegations in these lawsuits that we were responsible for these criminal acts, we have agreed to this settlement to avoid the expense and uncertainty of protracted litigation," an AT&T spokesperson told Business Insider. "We remain committed to protecting our customers' data and ensuring their continued trust in us."
