AT&T Lawsuit 2025, $177M Settlement Deadline December 18 – Claim Up to $7.5K Now
AT&T agreed to pay $177 million to settle class action lawsuits over two massive data breaches that exposed personal information of over 180 million current and former customers. The claim deadline is December 18, 2025. Eligible customers can receive up to $7,500—$5,000 for the first breach, $2,500 for the second breach. The 2019 breach affected 73 million people, exposing Social Security numbers, birth dates and legal names, while a second breach in April 2024 exposed phone records of approximately 109 million customers.
What Is the AT&T Lawsuit About?
The lawsuits alleged AT&T failed to implement adequate security measures to protect customers’ sensitive personal information, facilitating unauthorized access and theft of data. Two separate data breaches triggered consolidated class action litigation in federal court.
First Breach (March 2024 announcement): Data from the 2019 incident included names, addresses, telephone numbers, email addresses, dates of birth, account passcodes, billing account numbers, and Social Security numbers released on the dark web.
Second Breach (July 2024 announcement): Certain limited data had been illegally downloaded from an AT&T workspace on a third-party cloud platform hosted by Snowflake, Inc., affecting phone and text message records from 2022-2023.
Legal Claims Made Against AT&T
Plaintiffs filed multiple legal claims in state and federal courts:
- Negligence: AT&T failed to maintain sufficient cyber-security measures and recklessly handled personally identifiable information, leaving it vulnerable to cyberattacks
- Breach of Contract: AT&T breached its contract with customers based on assertions in the company privacy notice that it would adequately safeguard users’ sensitive personal data and inform them of a data breach
- Failure to Disclose Timely: AT&T did not promptly notify affected customers about the breach, potentially delaying individuals’ ability to take protective measures against identity theft and fraud
- Delayed Response: Internal evidence revealed AT&T was aware of the first data breach as early as August 2021, yet failed to take timely action to secure customer data or notify regulators
The cases were consolidated before Judge Ada E. Brown in the U.S. District Court for the Northern District of Texas as MDL No. 3:24-md-03114-E.
The $177 Million Settlement Breakdown
The settlement includes two payout funds: $149 million allocated for individuals affected by the March 2024 internal system breach, and $28 million reserved for those impacted by the July 2024 breach.
AT&T settled without admitting liability or wrongdoing. In a statement, AT&T said: “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”.
How Much Can You Claim? (Up to $7.5K)
Compensation depends on which breach affected you and whether you have documented losses:
AT&T 1 Settlement Class (March 2024 breach):
- Documented Loss Cash Payment: up to $5,000 for losses that occurred in 2019 or later, upon presentation of documentation that the losses are fairly traceable to the breach
- OR Tier 1 Cash Payment: For those whose Social Security numbers were exposed—five times larger than Tier 2
- OR Tier 2 Cash Payment: For those whose data was exposed but not their SSN
AT&T 2 Settlement Class (July 2024 breach):
- Documented Loss Cash Payment: up to $2,500 for losses from April 14, 2024 onward
- OR Tier 3 Cash Payment: Pro rata share of remaining settlement funds
Overlap Settlement Class Members: If your information was part of both breaches, you could be eligible for up to $7,500. Documentation for each breach must be unique.
Tier payments are pro rata shares distributed after settlement administration costs, attorney fees, and service awards are deducted.
December 18, 2025: Critical Deadline
You must submit your Claim Form online at the Settlement Website or by mail with a postmark by December 18, 2025. This deadline was extended from the original November 18, 2025 cutoff.
Miss this deadline and you forfeit your right to compensation.
Who Is Eligible to Claim?
AT&T 1 Settlement Class: All living persons in the United States whose Data Elements were included in the AT&T 1 Data Incident, announced on March 30, 2024.
AT&T 2 Settlement Class: Account owners, line users, or end users whose data was involved in the July 12, 2024 incident.
Both current and former customers qualify. Former customers are eligible if their data was affected during the 2024 breaches.
Step-by-Step: How to Claim Your Compensation
Online Submission:
- Visit www.telecomdatasettlement.com
- Enter your Class Member ID from your notification email
- Confirm your identity with personal information
- Select claim type: Documented Loss or Tier Payment
- Upload supporting documentation (if claiming documented losses)
- Submit and save confirmation number
Mail Submission:
- Download claim form from settlement website
- Complete all required fields
- Attach documentation for documented loss claims
- Mail to: AT&T Data Incident Settlement, c/o Kroll Settlement Administration LLC, P.O. Box 5324, New York, NY 10150-5324
- Postmark by December 18, 2025
Don’t Have Your Class Member ID? Call 833-890-4930 or write to the settlement administrator. You can also check your name on the Kroll Settlement Administration website.
What Documentation Do You Need?
For Documented Loss Claims: Customers must provide documentation showing that the losses they incurred are “fairly traceable” to the AT&T data breaches. Proof can include receipts and other documents “not self-prepared by the claimant that documents the costs incurred”.
Acceptable documentation:
- Credit monitoring service receipts
- Identity theft remediation costs
- Fraudulent charge statements
- Credit report fees
- Legal fees related to identity theft
- Lost time wages (with employer verification)
For Tier Payment Claims: Tiered cash claims do not require documentation, though payouts are lower and distributed pro rata based on remaining funds and total valid claims.
What Happens If You Miss the Deadline?
If you do nothing, you will not receive any benefits from this Settlement. If the Settlement is granted Final Approval and becomes final, you will not be able to start a lawsuit, continue with a lawsuit, or be part of any other lawsuit against Defendants based on any claim relating to the Data Incidents.
Missing the December 18, 2025 deadline means:
- No compensation payment
- No ability to file individual lawsuit later
- No opportunity to object to settlement terms
- Permanently waiving claims against AT&T for these breaches
Legal Framework: Applicable Law
The consolidated litigation proceeds under federal court jurisdiction in the Northern District of Texas. Key legal principles:
Negligence Standard: Companies collecting consumer data have a duty to implement reasonable security measures. AT&T requires customers to hand over information for the company’s commercial benefit and bears responsibility for safeguarding it.
Breach of Contract: The privacy notice stated AT&T would destroy former customers’ data once they were no longer needed, yet 65.4 million customers whose data was leaked were former customers.
Class Action Certification: On May 30, 2025, the AT&T 1 Plaintiffs and AT&T 2 Plaintiffs filed the Consolidated Class Action Complaint against AT&T, asserting claims that arose out of the Data Incidents.
The court granted preliminary approval in June 2025, finding the settlement fair, reasonable, and adequate.
AT&T’s Defense and Settlement Position
AT&T initially denied that the information had come from its systems or that it had suffered a breach. Despite ample evidence, AT&T again denied the data came from its systems. The company only acknowledged the breach after security researchers verified the data’s authenticity.
AT&T denied the allegations but said it had “agreed to this settlement to avoid the expense and uncertainty of protracted litigation”.
As part of the settlement, AT&T agreed to enhance its data security protocols and will provide confidential documentation to class counsel outlining its remedial efforts.
Settlement Enforcement Mechanisms
Court Oversight: Judge Ada E. Brown maintains jurisdiction to enforce settlement terms. The Court will hold a Final Approval Hearing on January 15, 2026, at 9:00 a.m. CT.
Settlement Administrator: Kroll Settlement Administration LLC manages claims processing, verification, and distribution under court supervision.
Objection Process: Class members could object to the settlement by November 17, 2025. The court reviews objections during final approval.
Opt-Out Rights: You must mail your request for exclusion to the Settlement Administrator postmarked on or before November 17, 2025 (this deadline has passed).
Payment Timeline: Payments are expected after final court approval on January 15, 2026, depending on claim verification. Distribution will occur once all appeals are resolved.
Broader Implications for Corporate Accountability
This settlement represents one of the largest data breach settlements in recent U.S. history, signaling heightened consequences for inadequate cybersecurity.
Impact on Corporate Data Practices:
- Increased liability for delayed breach notifications
- Higher duty of care for customer data protection
- Stricter requirements for third-party vendor security
- Greater transparency obligations when breaches occur
Comparison to Similar Cases: The AT&T settlement follows other major data breach resolutions including Equifax ($425M), Capital One ($190M), and Facebook ($725M). The trend shows courts imposing substantial financial consequences for data security failures.
Regulatory Implications: According to the Identity Theft Resource Center, data breaches in the U.S. surged 78% in 2023, affecting over 353 million individuals. AT&T’s case is one of the most high-profile examples of how personal data becomes vulnerable in the digital age.
The settlement pressures companies to invest in stronger cybersecurity infrastructure and respond transparently when breaches occur.
What This Means for Other Corporate Disputes
Precedent for Multi-Year Breach Cases: The fact that AT&T was aware of the breach in 2021 but didn’t disclose it until 2024 establishes liability for delayed notifications.
Third-Party Vendor Liability: The Snowflake platform breach demonstrates companies remain liable for data security failures by third-party vendors they use.
Class Certification Standards: The consolidation of multiple breach lawsuits into a single MDL provides efficiency for future data breach litigation.
Settlement Negotiation Leverage: The $177M payout shows plaintiffs have substantial leverage in data breach cases involving millions of customers and sensitive information like Social Security numbers.
Frequently Asked Questions
Q: I closed my AT&T account years ago. Am I still eligible?
Yes. 65.4 million customers whose data was leaked were former customers. Former account holders qualify if their data was in the breaches.
Q: Do I need proof of actual financial loss to get paid?
No. While documented loss claims pay up to $5,000-$7,500, tier payment claims require no documentation but pay lower pro rata amounts based on remaining settlement funds.
Q: Can I claim for both breaches?
Yes, if you were affected by both incidents. Documentation for each Documented Loss Cash Payment must be unique, meaning a Settlement Class Member may only use the information supporting a Documented Loss Cash Payment once.
Q: When will I receive payment?
Payments are expected to be issued early next year after the January 15, 2026 final approval hearing and resolution of any appeals.
Q: What if I didn’t receive a notification email?
You can still file a claim. Contact Kroll at 833-890-4930 or check the settlement website to verify your eligibility and obtain your Class Member ID.
Q: Can I opt out and file my own lawsuit instead?
The opt-out deadline (November 17, 2025) has passed. If you didn’t opt out by that date, you’re bound by the settlement terms and cannot file individual litigation.
Q: Is this settlement taxable?
Consult a tax professional. Generally, compensation for identity theft and privacy violations may have tax implications depending on your circumstances and what the payment covers.
Take Action Before December 18, 2025
The AT&T data breach settlement provides significant compensation for one of the largest cybersecurity failures in telecommunications history. With up to $7,500 available per claimant and a firm December 18, 2025 deadline, affected customers must act immediately.
File your claim now at www.telecomdatasettlement.com or call 833-890-4930.
Missing this deadline means forfeiting your right to compensation and your ability to pursue individual legal action against AT&T for these breaches.
Sources:
- Official Settlement Website – Telecom Data Settlement
- U.S. District Court, Northern District of Texas, MDL No. 3:24-md-03114-E
- AboutLawsuits.com – AT&T Data Breach Lawsuit Coverage
- CBS News, TIME, Washington Post – AT&T Settlement Reporting
- Kroll Settlement Administration – Official Settlement Administrator
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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