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The preliminary settlement will see AT&T pay affected customers between $2,500 and $5,000 each
On Friday, a US court judge gave preliminary approval for a $177 million settlement proposed by AT&T to resolve class-action lawsuits levelled against the company following major data breaches.
The settlement relates to two major breaches in AT&T’s cybersecurity, both of which were announced last year. According to court documents, $149 million of the settlement relates to a data leak from 2019, which saw hackers gain access to the personal data of 51 million users, including names, Social Security numbers, and dates of birth. The remaining $28 million relates to a more recent breach in 2024, when cybercriminals potentially gained access to the personal information of “nearly all” of the operator’s 109 million wireless customers via cloud provider Snowflake.
Both incidents sparked numerus class action lawsuits seeking restitution for affected customers, broadly arguing that AT&T had failed in their obligation to protect customer data.
AT&T disputes that it failed its customers but has nonetheless moved to settle the matter quickly.
“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,” said the company in a statement. “We remain committed to protecting our customers’ data and ensuring their continued trust in us.”
Customers impacted by the 2019 breach will be eligible for up to $5,000, while those impacted by the 2024 breach could gain up to $2,500.
The settlement is expected to receive final approval by the end of this year, with payouts to begin next year.
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