In context: After revealing two massive data breaches in 2024, AT&T has reached a combined $177 million settlement agreement in the lawsuits that followed. If you were one of the millions of affected customers, you could be eligible to receive a payout as high as $7,500.
It was reported early last year that hackers had accessed former and current AT&T customer records and put the data up for sale on the dark web.
AT&T spent weeks denying that the cache had come from the company, but finally admitted that details of the 73 million affected people did originate from the telecoms giant.
Things went from bad to worse for the firm when it later revealed another data breach, this one from 2022, had seen almost all of its 110 million customers affected.
Stolen details included names, email addresses, mailing addresses, phone numbers, social security numbers, birth dates, AT&T account numbers, and four-digit PIN passcodes.
Unsurprisingly, the breaches resulted in a consolidated class-action suit against the company in May. The company was accused of repeatedly failing to protect customer data, but despite continually denying any wrongdoing, AT&T decided to settle.
The $177 million settlement is made up of a $149 million all-cash fund for the first data breach and a $28 million fund for customers affected by the second.
"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."
If any of your data was included in the first leak, you can submit a Document Loss Cash Payment claim of up to $5,000. The catch is that you must provide documented proof showing that the losses incurred are fairly traceable to the first breach and happened after 2019.
Anyone affected in the second breach is also eligible for a Documented Loss Cash Payment claim for losses that happened on or after April 14, 2024. The maximum payout is $2,500.
Kroll, which is managing the class-action settlement, said that some customers may fall into an overlap settlement class member, meaning they could receive up to $7,500.
The settlement also includes tiered cash payments. An alternative to the Document Loss Cash Payment, these represent a pro rata share of the Net Settlement Funds cash (the funds left after payment of settlement administration costs, attorneys' fees, costs, and service awards). The amount of the net settlement available for class member distribution is unknown at this time.
If you think you might be eligible for a payout, make sure to submit a claim by December 18. If you want to opt out of the class member settlement in order to retain the right to file other lawsuits related to the breaches, you have until November 18 to do so.
A final approval hearing for the settlement will take place on January 15, 2026.