If you were affected by one or both of AT&T’s recent data screw-ups, there are real dollars at stake — and the deadline to pocket a piece of that pie is drawing nigh. A proposed $177 million settlement in a class-action lawsuit would provide cash funds for millions of current and former customers — with some who submit specific expenses able to get as much as $7,500 back.
What Is Included in the Proposed $177 Million Settlement
The deal originates from two distinct security incidents. According to court filings, about $149 million accounts for a major breach that compromised sensitive information linked to some 51 million individuals, including names, Social Security numbers, and birth dates. A second, $28 million fund applies to a breach of a third-party cloud platform that left call and message metadata for large swaths of the customer base exposed.
AT&T has denied wrongdoing but said it resolved the matter “to avoid costly litigation.” The company says the later episode did not involve customer names, and arrests have been made in connection with the activity. A federal judge in Texas approved the settlement process, which will see claims processed and then wait for final approval by the court.
Who Qualifies, And How Much You Might Receive
You are eligible if court documents say your data was stolen in either event. The notices are being mailed by Kroll Settlement Administration, which is handling the process on behalf of the court. There is still a way to check your eligibility even if you did not receive notice, by calling the official hotline or filling out the form on the settlement website.
For the first incident, you can receive a refund of up to $5,000 for documented out-of-pocket losses or a cash payout from a class fund tied to participation levels.
Claimants whose Social Security numbers were compromised will receive Tier 1 payments — five times the Tier 2 amount for others.
For the later incident, you are eligible for reimbursement of up to $2,500 in documented losses or a payment from the variable class fund. If you were hit by both, then you can make two claims — but don’t try to use the same receipts or losses for both. It’s how out-of-pocket costs can pile up to a peak — in this case, $7,500 — of possible reimbursements.
How to File a Claim Without Getting Snagged
Technically that would be the official settlement site, where you can click on Submit Claim. You’ll be prompted to enter your class member ID from the email or postcard notice, and then you’ll be asked to confirm this by entering your email address, AT&T account number, or name. If you don’t have it, use the site’s contact form or telephone the administrator on its helpline to obtain it.
To make reimbursement claims, collect clear evidence such as:
- Bank statements with fraudulent charges
- Receipts for credit monitoring or identity restoration
- Correspondence with your financial institution
- Police reports or an FTC Identity Theft Report
- Any documentation linking a loss to the incidents
Make copies of everything you submit and write down your confirmation number.
Key Dates, Deadlines, and What You Can Do Now
You must file claims online within the deadline posted on the official settlement website. If you would like to preserve the ability to pursue your own lawsuit — for example, by opting out of the settlement through the website set up by class counsel and subject to court approval — you must opt out before the relevant opt-out deadline identified there. You can also object to the settlement and ask the court to change it. The court will hold a hearing for final approval after those dates.
If you take no action, then you do not get money and waive the right to sue over these same issues in a separate lawsuit. Please visit the settlement site for the most recent information on the timing and terms of the settlement; only the official administrator or the court will have any further facts.
Why Acting Now Matters for Your Potential Payout
Class-member payments are based on the number who participate; as that group grows larger, each variable payment shrinks. Claims for reimbursement are also combed over for sufficient documentation, and gathering it early in the process helps. The Federal Trade Commission has reported on the persistence of identity theft nationwide, and the Identity Theft Resource Center cautions that breached information can be used to commit fraud months or even years in the future. The longer you wait to claim, the higher the risk you’ll lose out.
Beware Of Scams And Verify Communications
Settlement-related phishing is common. Emails should include Kroll Settlement Administration in the message line and follow directions on the website. Don’t click on links in messages from unknown senders; go directly to the settlement website and call the administrator’s hotline to confirm. The FTC also stresses treating unexpected requests for your Social Security number, passwords, or a unique code sent to you as red flags.
If you think someone is misusing your personal information, you can also consider placing a free fraud alert or credit freeze with the nationwide credit reporting agencies and submitting an Identity Theft Report to the agency through its help site. Tools and insights from CISA and NIST also detail recommended approaches for monitoring accounts and improving authentication.
Bottom line: if you are eligible to be included, file a claim properly and on time. The settlement provides real relief, but only for those who do what the judge has ordered.
