The AT&T servers were compromised in 2024, marking one of the most significant data breaches of the year.
AT&T is facing an uphill battle, particularly following the recent issues surrounding a reported call incident involving Donald Trump. However, this difficult period could potentially benefit consumers, as the company has consented to a $177 million settlement for customers impacted by two significant data breaches in 2019 and 2024.
On June 20, U.S. District Judge Ada Brown granted preliminary approval for the terms of this settlement, which aims to resolve two lawsuits connected to the breaches. The total $177 million will be distributed to customers directly affected by these incidents. Payments will be structured to provide larger amounts to those who can demonstrate significant losses attributable to the leaks, especially from the earlier 2019 breach, while AT&T maintains its claim of not being directly liable for these security failures.
Both breaches prompted considerable backlash, leading to a flurry of class action lawsuits accusing AT&T of failing to adequately safeguard customer information. The first breach, occurring in 2019, exposed data of approximately 73 million account holders, including sensitive information like names and Social Security numbers. The company announced that it discovered this exposure after identifying customer data on the dark web.
The subsequent breach in April 2024 occurred when unauthorized access was gained through AT&T’s cloud storage provider, Snowflake, revealing call and text records for nearly all U.S. customers—approximately 109 million individuals. AT&T emphasized that the stolen data did not include customer names, and arrests were made related to this incident. The incident illustrates a serious lapse in data security protocols, prompting significant concerns over the company’s practices.
Eligibility for the settlement extends to all current and former AT&T customers whose data was compromised in either breach. Individuals who can provide solid evidence of direct damages may receive higher compensation, with the maximum compensation for the 2019 breach set at $5,000 and $2,500 for claims related to Snowflake’s data leak. The exact payout amounts are still under consideration based on the number of claims received and validated.
AT&T anticipates that payments will commence in early 2026. Notification schedules indicate that affected individuals will be informed between August 4 and October 17, 2025. Claims must be submitted by November 18, 2025, pending final approval in a court hearing scheduled for December 3, 2025. Business owners and professionals are encouraged to stay updated on these developments, as they reveal broader implications for data security in corporate environments.
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