AT&T to pay $177 million for data breach settlement

In 2024, AT&T faced major data breaches that leaked personal information of millions of customers, sparking a class-action lawsuit from affected subscribers. A U.S. judge recently gave initial approval for AT&T to settle the case by paying $177 million. This decision aims to compensate those impacted by the breaches. The breaches exposed sensitive details, like names and call logs, affecting tens of millions of AT&T users.

The settlement, approved by Judge Ada Brown in Dallas, offers payments to customers who can prove losses linked to the breaches. Depending on the case, individuals could receive up to $2,500 or $5,000. After covering these claims, the leftover funds will go to others whose data was compromised. AT&T expects final court approval by late 2025, with payments starting in early 2026.

The company denied responsibility for the breaches but agreed to settle to avoid lengthy and costly legal battles. Meanwhile, the FCC is investigating a 2023 breach involving an AT&T cloud vendor, which exposed data of 8.9 million customers. This settlement highlights the growing need for stronger cybersecurity to protect user data. For now, affected AT&T customers await further details on how to claim their compensation.