AT&T Data Breach Class Action Settlement: What You Need to Know

Introduction

In a groundbreaking legal development for data privacy in 2025, AT&T has reached a proposed $177 million class action settlement to resolve lawsuits over two massive data breaches disclosed in 2024. The agreement, which has received preliminary court approval, impacts tens of millions of current and former customers whose sensitive information—including Social Security numbers and call/text metadata—was exposed or stolen. With claims now open and deadlines looming, it’s essential for affected individuals to understand the settlement’s details, how to file, and what compensation could look like. This comprehensive guide outlines the background, key terms, eligible parties, and what you need to do next.

Background — What Happened and Why It Matters

The Data Incidents

AT&T disclosed two significant data breaches in 2024:

• March 2024 Breach — Personal information, including Social Security numbers and account passcodes, of approximately 7.6 million current and 65.4 million former customers was leaked on the dark web.

• July 2024 Breach — Metadata—specifically call and text records—from nearly all AT&T customers during a six-month span in 2022 was illicitly downloaded from a Snowflake-hosted cloud repository.

Despite denying responsibility, AT&T agreed to settle to avoid the cost and uncertainty of prolonged litigation.

Legal Proceedings & Preliminary Approval

Class action lawsuits filed across multiple jurisdictions were consolidated under multidistrict litigation in the Northern District of Texas. On June 20, 2025, U.S. District Judge Ada Brown granted preliminary approval to the $177 million settlement and scheduled a final approval hearing for December 3, 2025.

Settlement Overview — Terms, Funds, and Eligibility

Breakdown of Settlement Funds

• Total Settlement Amount: $177 million, divided into:

  • $149 million allocated to the March 2024 incident

  • $28 million allocated to the July 2024 incident

Compensation Structure

Affected customers may be eligible to receive:

• Up to $5,000 for losses tied to the March incident

• Up to $2,500 for losses tied to the July incident

Remaining funds, after direct loss compensation, will be distributed among other impacted individuals.

Legal fees may consume up to one-third of the settlement, with class representatives eligible for $1,500 each.

Who Is Covered?

The settlement defines two subclasses:

1. AT&T 1 Class: People whose personal data were included in the March breach.

2. AT&T 2 Class: AT&T account or line users whose call/text records were part of the July breach.

Key Dates & Deadlines

Taking Action — What You Should Do Now

Step-by-Step Guide for Claimants

1. Watch for official notifications via email, letter, or postcard starting in early August.

2. Submit a valid claim form by November 18, 2025, either online or via mail.

3. Decide whether to stay in, opt out, or object:

   • Stay in to participate in the settlement.

   • Opt out by October 17 if you want to preserve your right to sue separately.

   • Object by October 17 if you disagree with any settlement terms.

4. Prepare documentation to support claims of direct loss.

5. Await the final hearing on December 3, 2025, to see if the settlement is finalized.

6. Expect disbursements in early 2026 if the settlement is fully approved.

Broader Significance & Takeaways

Lessons from the Settlement

• Scale of the breach: Over 70 million individuals impacted—one of the largest in U.S. telecom history.

• Cloud vulnerabilities: Use of third-party platforms like Snowflake introduced critical exposure.

• Retention risks: Data from years ago (including inactive accounts) was still retained and compromised.

• Regulatory pressure: Highlights the role of regulators like the FCC in enforcing data protection.

• Consumer recourse: Settlement demonstrates legal avenues available when large-scale data incidents occur.

Conclusion

The AT&T $177 million settlement represents a landmark resolution for class action lawsuits tied to massive 2024 data breaches. While AT&T denies wrongdoing, the agreement brings vital relief and closure to affected millions—offering compensation and credit monitoring as a way to move forward.

For affected customers: Stay alert for notifications, file your claims before November 18, and make informed decisions about opting out or objecting. The final verdict will be decided at the December 3 hearing, with payments expected to begin in early 2026.

This settlement underscores the necessity for stronger cybersecurity practices, prudent data retention, and corporate accountability in safeguarding consumer privacy.