AT&T faces $177 million settlement after major data breaches

In the United States, AT&T is facing significant repercussions following two major data breaches that have impacted its customers. The first breach occurred in 2019 but was only acknowledged by AT&T in March 2024, after customer information was found circulating on the dark web. As a corrective measure, the company reset passwords for all affected customers. This revelation sparked numerous lawsuits, ultimately leading to a consolidated legal action against the telecommunications giant. The second breach occurred in 2024, termed the Snowflake breach, which further compounded AT&T's legal challenges. After several court proceedings, the company has found itself on the verge of a substantial settlement amounting to $177 million. According to the preliminary approval granted by US District Judge Ada E. Brown on June 20, 2025, $149 million is designated for victims of the 2019 breach and an additional $28 million is allocated for those affected by the 2024 breach. This settlement serves as a formal recognition of the damages suffered by the affected customers and is set to provide compensation for their losses. To facilitate claims, Kroll Settlement Administration, which handles the settlement logistics, has established a dedicated website for eligible individuals to submit their claims. Customers who believe they were affected by either data breach can find instructions on filing claims online. They may need a Class Member ID, which was communicated to them through email notifications. Additionally, those who did not receive notifications are encouraged to reach out to the settlement administrator for clarification on their eligibility. The AT&T settlement not only highlights the importance of data security in today’s digital landscape but also sets a precedent for how companies must manage customer information to avoid similar incidents in the future. With technology advancing rapidly, consumers are increasingly vulnerable to data breaches, and legal actions like this serve to hold companies accountable while potentially incentivizing them to strengthen their cybersecurity protocols moving forward.