AT&T settles customer data breach lawsuit for $177 million. Eligible claimants may file for compensation from two settlement funds following data incidents in 2024.
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| AT&T has agreed to a $177 million settlement in a class action over data breaches in 2024. Eligible individuals can submit claims for compensation by November 18, 2025. Image: AT&T/ CH |
PHILADELPHIA, United States — August 4, 2025:
AT&T has reached a $177 million settlement in the class action lawsuit In Re: AT&T Inc. Customer Data Security Breach Litigation, which stems from two separate data incidents that compromised customer data. The lawsuit, filed in the United States District Court for the Northern District of Texas, claims that AT&T’s customer data was exposed in two breaches. The first, occurring in March 2024, involved certain data fields being released on the dark web, while the second, announced in July 2024, saw limited AT&T data unlawfully downloaded from a third-party cloud platform hosted by Snowflake, Inc. AT&T denies any wrongdoing, and no court has found the company liable.
The settlement introduces two separate funds to compensate affected individuals. The first fund, known as the AT&T 1 Settlement Fund, is valued at $149 million and addresses claims arising from the March 2024 data incident. The second, the AT&T 2 Settlement Fund, totals $28 million and resolves claims related to the July 2024 breach. Settlement Class Members will be eligible for compensation depending on which subclass they belong to, either through documented loss cash payments or tiered cash payments.
Individuals affected by the incidents can submit claims via a Claim Form available on the official settlement website, www.TelecomDataSettlement.com. The deadline for submitting completed claim forms is November 18, 2025. The forms can either be submitted online or mailed to the settlement administrator, Kroll Settlement Administration LLC, P.O. Box 5324, New York, NY 10150-5324.
Those who wish not to participate in the settlement can choose other options. If they decide to do nothing, they will remain part of the Settlement Class but will not receive any benefits from the settlement. However, they will be bound by its terms and waive any right to sue over the claims asserted in the lawsuit. Alternatively, individuals may choose to exclude themselves from the settlement, thereby retaining the right to pursue their own legal action. To opt out, a written request must be mailed to the settlement administrator, postmarked no later than October 17, 2025.
For those who remain a part of the Settlement Class but disagree with the terms, they may file an objection to the settlement. These written objections must be submitted to the Court by October 17, 2025. The objections will be reviewed during the Final Approval Hearing scheduled for December 3, 2025, at 9:00 a.m. CT. During this hearing, the Court will also address the payment to Class Counsel for their fees (up to one-third of the settlement funds) and potential awards for Class Representatives, which may amount to up to $1,500 each.