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AT&T reaches a $177 million settlement regarding data breaches: Key information to understand

AT&T reaches a $177 million settlement regarding data breaches: Key information to understand


(Nexstar) – If you’ve been affected by significant data breaches involving AT&T, you may be entitled to a share of a recently approved $177 million settlement.

AT&T is facing two lawsuits concerning these data breaches. A federal judge in Texas has given preliminary approval for two separate settlement pools: one worth $149 million and the other $28 million.

AT&T acknowledged last March that data, including Social Security numbers, was discovered on the Dark Web. This information pertains to current account holders and about 65.4 million past customers. The breaches began in 2019. By July, AT&T reported that nearly all customer data had been compromised in breaches that occurred in 2022.

In response to the allegations, AT&T stated, “We deny these lawsuit claims, but we’ve chosen to settle to avoid the expenses and uncertainties of prolonged litigation. Our commitment to protecting your data remains strong.”

Eligibility for the settlement extends to both current and former customers, but you’ll need to demonstrate any damages incurred as a result of the breaches.

According to court documents, claimants may receive up to $5,000 for the first breach and $2,500 for the second. The remaining funds will be allocated to other eligible individuals.

A payment website is expected to go live in early August, which will notify potentially affected individuals via email or postcard about their eligibility for compensation.

The cut-off date to opt out or contest the settlement is set for October 17, 2025. Claims must be filed by November 18, 2025.

The final approval hearing for the settlement is scheduled for December 3, 2025. Though it may take some time for payments to be distributed, AT&T has indicated that payouts could begin early next year.

This settlement follows several high-profile cases last year, such as a $95 million settlement with Apple concerning allegations related to Siri and a $100 million settlement with Walgreens for overcharging customers on generic drugs.

Additionally, the FTC announced that Fortnite will be sending over $126 million in payments related to claims of misleading young players into making unnecessary purchases.

Individuals who made purchases on the GameStop website between August 18, 2020, and April 17 this year will be eligible to file a claim by August 15, 2025, in a class action case alleging that GameStop shared customer info with Facebook without consent.

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