AT&T settled a $177 million class-action lawsuit last year, agreeing to pay customers whose personal information was stolen in two data breaches. A Texas district court has since approved the settlement agreement on Oct. 2. However, even if you were impacted, this doesn’t mean a windfall is coming your way.
In March 2024, AT&T announced that data belonging to approximately 73 million current and former customers had been found on the dark web. The data appeared to be from 2019 or earlier, and included personal information such as social security numbers.
Four months later in July, AT&T discovered a second major data breach. A bad actor had accessed AT&T’s cloud server and downloaded records of customers’ calls and texts, as well as their phone numbers. This breach impacted nearly every AT&T customer who used the telco’s network between May 1 and Oct. 31, 2022, as well as some on Jan. 2, 2023.
Customers filed multiple class-action lawsuits against AT&T which were later combined. The company ultimately agreed to pay a cash settlement fund of $177 million: $149 million for those impacted by the first breach, and $28 million for the second. Though that is no small chunk of change, the amount each individual claimant receives will be significantly smaller. After more than $18 million is subtracted for lawyers’ fees, the remaining settlement must be divided among several million people.
Claimants in the AT&T class-action settlement are split into three tiers, each of which will receive a different payout. Tier 1 class members had their social security number exposed by the breach discovered in March 2024. Over 1.65 million people made claims as members of this class, and will each receive around $39-$40.
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Tier 2 claimants were impacted by the same breach, but did not have their social security number exposed. More than 687,000 people submitted claims as part of this tier, and will each get approximately $7.50-$8.10.
Finally, Tier 3 claimants were impacted by the July 2024 breach. Over 1.5 million of these class members will take home around $6.50-$7.10 each.
People in Tier 1 could submit a claim for up to $5,000 if they had documentation proving they suffered actual losses due to the AT&T breaches. Similarly, those in Tier 2 could claim up to $2,500 if able to show such losses as well. These aren’t mutually exclusive either, so claimants could receive up to $7,500 if they are part of both tiers. Even so, the majority of class members are unlikely to have documented losses.
Unfortunately, if you haven’t already submitted a claim, it’s too late to do so now. The deadline to opt in for a payout from AT&T’s settlement was Dec. 18 last year. If you didn’t submit a claim before then, you will not receive any money. Those applying for a higher payout due to documented losses also had to submit their evidence by Sept. 8 this year.
If you didn’t opt in but also didn’t explicitly exclude yourself from the class by Nov. 17, you are still bound by the settlement’s terms. This means that you can’t bring your own lawsuit against AT&T for the same breaches, so there’s no chance of you getting anything at all.
It isn’t clear exactly when class members will receive their money. The official settlement website states that even after the court approves the settlement, appeals may delay any payouts. Class members will only begin receiving settlement money after the time window for appeals has expired, and all claims have been reviewed. However, if no appeals are filed, payments are expected to begin around December this year.
