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AT&T agrees to pay $177 million for breach of personal data of current and former customers

Settlement establishes two settlement funds related to lawsuits filed for data breaches occurring in 2019 and 2022

An AT&T building

An AT&T buildingYuri Cortez / AFP.

Sabrina Martin
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Sabrina Martin

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A federal judge in Texas preliminarily approved a $177 million settlement to resolve two class action lawsuits filed against AT&T after the telecommunications company was involved in massive data breaches that exposed the personal information of more than 70 million people.

Two leaks

The settlement provides for two compensation funds: one for $149 million and another for $28 million, in response to two lawsuits related to data leaks occurring in 2019 and 2022. Both compromise sensitive information, including Social Security numbers and other personal data.

In March 2024, AT&T acknowledged that a data set shared on the dark web corresponded to actual information on current and former customers. Approximately 7.6 million active account holders and 65.4 million former customers were affected. Subsequently, in July of the same year, the company confirmed that another breach had allowed user data to be downloaded to a third-party platform.

Who qualifies for compensation?

Both current and former customers could qualify for part of the settlement. However, they will have to prove that they suffered damages as a result of the leaks. According to court documents, the highest individual payments will be up to $5,000 for the first leak and up to $2,500 for the second. The rest of the money will be distributed among the others affected, based on the evidence presented.
AT&T denied that it was responsible for the incidents, but stated that it agreed to the settlement "to avoid the expense and uncertainty of protracted litigation." Through a statement sent to Nexstar, the company reiterated its commitment to data protection and customer trust.

Key dates and next steps

An official settlement website is expected to be enabled in early August, from where users will be able to check if they qualify forcompensation. Notifications will be sent by e-mail or post to potential beneficiaries.

The deadlines established are as follows:

- October 17, 2025: deadline to opt out or object to the terms of the settlement.

- November 18, 2025: deadline to file a claim.

- December 3, 2025: final approval hearing before the court.

Payments would begin to be distributed in early 2026, a company spokesperson said.

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