Millions of AT&T customers may be eligible for thousands of dollars in compensation as part of a sweeping data breach settlement valued at $177 million. The settlement stems from lawsuits alleging that the telecommunications giant failed to adequately protect user data during two separate breach incidents in 2024.

The settlement comes after AT&T disclosed that sensitive data belonging to tens of millions of current and former customers had been leaked online in two separate events.

AT&T Massive Litigation

According to the official settlement site, the first breach was announced on March 30, 2024, when customer information — including names, addresses, Social Security numbers, and passcodes — appeared on the dark web. A second incident followed on July 12, 2024, when call and text metadata was illegally downloaded from a compromised AT&T workspace hosted on a third-party cloud platform.

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oth incidents led to a consolidated class-action lawsuit filed in May 2024. While the company disputes the allegations, AT&T ultimately agreed to fund two cash settlement ols totaling $177 million.

“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.”

Related links:

AT&T Data Breach Settlement: Who's Eligible, How to Claim $7,500 - Business Insider

AT&T Official Site | Our Best Wireless & Internet Service

AT&T data breach settlement application deadline days away

Who Qualifies for Data Breach Settlement Compensation?

Eligibility falls under two groups managed by Kroll, the third-party settlement administrator:

AT&T 1 Settlement Class

This group includes U.S. residents whose highly sensitive information — such as birth dates, email addresses, account numbers, passcodes, and Social Security numbers — was included in the March 2024 leak.

AT&T 2 Settlement Class

This class covers customers whose call-related data was accessed during the July 2024 incident, including phone numbers contacted, call durations, and text metadata.

AT&T has said it notified all customers affected by either breach.

How Much Money Can Customers Receive?

Compensation varies depending on the category:

• AT&T 1 Settlement Class
  • Up to $5,000 in Documented Loss Payments for fraud-related expenses dating to 2019.
  • Tier 1 or Tier 2 payments as a pro rata share of the $149 million fund.
• AT&T 2 Settlement Class
  • Up to $2,500 for losses occurring on or after April 14, 2024.
  • Tier 3 pro rata payments from the $28 million fund.

Some individuals fall under both categories, meaning they could receive as much as $7,500.

How to File a Claim and Key Deadlines

Customers must submit a claim by December 18, 2025, to be eligible for compensation. Filing a claim is the only way to obtain a payout. Those wishing to opt out — preserving the right to pursue their own lawsuit — must do so by November 17, 2025.

A final approval hearing is scheduled for January 15, 2026, in the U.S. District Court for the Northern District of Texas.