In a recent development, AT&T has secured court approval to pay a settlement amount of $177 million to resolve a class-action lawsuit stemming from data breaches that exposed personal information of millions of its customers. The settlement was deemed fair and reasonable by U.S. District Judge Ada Brown in Dallas.
The data breaches, which occurred last year, led to the compromise of sensitive customer data. As part of the settlement agreement, affected AT&T customers may receive compensation ranging from $2,500 to $5,000 based on the losses incurred due to the breaches. Additionally, individuals whose personal information was accessed in the breaches will also receive smaller payments.
AT&T has maintained its stance that it was not at fault for the data breaches, attributing them to criminal acts. Despite this, the company opted to settle the lawsuit to avoid prolonged litigation costs and uncertainties. The final approval for the settlement is expected later this year, with settlement payments anticipated to commence in early 2026.
Furthermore, the Federal Communications Commission (FCC) is investigating a separate data breach incident involving an AT&T cloud vendor in 2023, which exposed customer data. AT&T incurred a $13 million fine from the FCC to resolve this issue.
