A federal judge granted final approval to the agreement on Friday, Oct. 2, according to the settlement's website. The deal resolves class-action lawsuits over breaches that exposed personal information belonging to millions of current and former AT&T customers.
US District Judge Sidney Fitzwater in Dallas also approved $59 million in legal fees for attorneys who negotiated the deal, Reuters reported. The court's final approval order said nearly 5 million claims were submitted as of Monday, Aug. 24.
The settlement includes $149 million for customers affected by the first data breach and $28 million for those impacted by the second. Customers affected by the first incident could receive up to $5,000 for documented losses, while those affected by the second could receive up to $2,500.
Most customers receiving tiered cash payments are expected to get far less than those maximum amounts. Estimated payments range from about $6.50 to $40, depending on which breach affected the customer and what information was exposed, USA Today reported.
Customers whose Social Security numbers were exposed in the first breach are expected to receive between $39 and $40. Those affected by the first breach whose Social Security numbers were not exposed are estimated to get between $7.50 and $8.10.
Eligible customers affected by the second breach are estimated to receive between $6.50 and $7.10. The payments aren't guaranteed and will be calculated based on the money remaining after documented-loss claims and other approved expenses are paid.
The first breach became public in March 2024 after information tied to about 73 million current and former AT&T account holders appeared on the dark web. The exposed data included Social Security numbers, addresses, and passcodes.
AT&T disclosed the second breach in July 2024 after hackers illegally downloaded customer data from its workspace on a third-party cloud platform. The exposed information included call and text records from a roughly six-month period in 2022 involving nearly all of AT&T's cellular customers.
The settlement faced dozens of objections, including claims that the amount was too small compared with a $350 million settlement in separate data breach litigation involving T-Mobile. AT&T has denied wrongdoing and agreed to settle to avoid the expense and uncertainty of prolonged litigation.
Payments will be distributed after the appeals period ends and customers don't need to refile claims.
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