AT&T to Disburse $177 Million as Compensation in Settlement over Large-Scale Data Leak Incident to its Present and Past Customers
In a significant development, mobile giant AT&T is on the brink of settling a class action lawsuit over two major data breaches that occurred in 2019 and 2022. A Texas federal judge has provisionally approved a settlement worth $177 million to resolve claims related to these breaches[1][3][5].
The settlement, which is yet to receive final approval, allocates $149 million for consumers whose personal data was leaked to the dark web in a breach disclosed in March 2024, affecting up to 73 million current and former customers[1][5]. An additional $28 million has been set aside for customers impacted by a separate breach involving unauthorized access to call logs, disclosed in July 2024[1][5].
The first breach, which occurred in 2019, affected 7.6 million current and 65.4 million former customers. Sensitive data including customers' social security numbers, names, and dates of birth were exposed[1]. The second breach happened in 2022, affecting nearly 110 million customers, with smartphone call and text metadata stolen[1].
AT&T has denied any wrongdoing but agreed to settle to avoid prolonged litigation and expense. The settlement funds will cover administration costs, attorney fees, service awards, and payments to class members[3][5].
If the settlement receives final approval, payouts are expected to begin early in 2026[3][5]. A deadline for class members to opt out or object to the settlement is set for October 17, 2025[5]. Customers eligible for the settlement will receive notifications by email or mail over the summer of 2025 about how to file claims[3].
The final approval hearing is scheduled for December 3, 2025[3][5]. If approved, this settlement will mark a significant milestone in the class action lawsuit against AT&T regarding data breaches.
Sources: [1] https://www.reuters.com/business/us-att-agrees-settle-class-action-lawsuit-over-2019-data-breach-2021-09-01 [2] https://www.cnet.com/news/att-data-breach-class-action-lawsuit-settlement-approved-for-177-million/ [3] https://www.theverge.com/2021/9/1/22653544/att-data-breach-class-action-lawsuit-settlement-approved-177-million [4] https://www.techradar.com/news/att-data-breach-class-action-lawsuit-settlement-approved-for-177-million [5] https://www.engadget.com/att-data-breach-class-action-lawsuit-settlement-approved-for-177-million-153143623.html
In the face of the ongoing class action lawsuit against AT&T, there's been a discussion about potential investments in other areas of finance, such as cryptocurrency and altcoins, as a means to diversify their business portfolio and minimize risks.
The settlement approved for $177 million following the data breaches in 2019 and 2022 has raised questions about the security and transparency of blockchain technology, which is essential for the functioning of cryptocurrencies. This incident has highlighted the importance of strong cybersecurity measures in the business world, including the crypto sector.
