AT&T has denied the allegations in the two lawsuits and agreed to the settlement to avoid engaging in protracted litigation.
AT&T agreed to pay $177 million to settle two class-action lawsuits related to data breaches that targeted AT&T customers in recent years, meaning that impacted parties will soon be eligible to collect part of that settlement.
Two lawsuits were filed against AT&T regarding two data breaches that the Dallas-based telecommunications company had confirmed last year, impacting tens of millions of current and former customers who used the company’s cellphone service.
In statements to the media, AT&T has denied the allegations in the lawsuits and agreed to the settlement to avoid engaging in protracted litigation.
Who May Be Eligible
U.S. District Judge Ada Brown in Dallas said last month in a ruling that the class-action settlement was “fair, reasonable, and adequate.” Her order has AT&T dole out $149 million in the first class-action settlement and $28 million in the second one.
“The Settlement Funds will be used to pay for each class’s respective Settlement Class Member Benefits; Settlement Administration Costs; any Court-approved attorneys’ fees and costs to Class Counsel; and any Court-approved Service Awards to Plaintiffs for serving as Class Representatives,” said the June 20 ruling. “The Settlement Funds will be created and funded subject to the terms of the Settlement.”
Under the order, the settlement will be paid out to current or former AT&T customers whose data was breached in the two incidents.
Individuals will likely be notified on whether they are qualified to receive a portion of the settlement sum by Aug. 4, 2025, the order said.
They will be notified by Oct. 17, 2025, on the completion of the settlement program. The deadline to file a claim, if eligible, is Nov. 18, 2025, the court papers say. A final approval was set for Dec. 3, 2025, the papers show.
AT&T had a July 3 deadline to fund an “initial portion” of two escrow accounts used for the two settlements, the judge ruled.
The deadline for qualified individuals to opt out or object to the two settlements is Oct. 17, 2025, according to court filings.
