Millions of AT&T customers may soon receive compensation due to a substantial $177 million legal settlement related to significant data breaches. The breaches, announced in 2024, compromised the personal data of tens of millions of current and former AT&T account holders. CBS News reported that the first breach surfaced in March 2024, revealing sensitive information—like birth dates and Social Security numbers—on the dark web. AT&T acknowledged, “the source of the data is still being assessed,” as the incident affected around 73 million customers. This data traced back to records from 2019 or earlier.
The second breach, disclosed in July 2024, involved hackers infiltrating a third-party cloud platform to download company records. This breach reportedly included call and text records for nearly all AT&T mobile customers. Following the revelations, multiple lawsuits prompted a consolidation into two class-action cases. In a proposal made on August 4, settlement administrators outlined the financial agreement: $149 million designated for the first settlement class and another $28 million allocated for the second.
If the U.S. District Court for the Northern District of Texas approves this settlement in December, impacted customers could see compensation of up to $7,500 if affected by both breaches. Additionally, claims related to the first breach may allow customers to seek up to $5,000 for losses incurred in 2019 or later, while the second breach permits claims of up to $2,500 for losses after April 14, 2024. Customers must provide documentation linking their losses to the breaches and submit their claims by November 18, 2024. It is essential to note that filing a claim waives the right to pursue further legal action against AT&T.
LifeLock indicated in June that millions of AT&T customer records previously affected by the breaches remained available for purchase on the dark web. The company highlighted the risk, stating, “A staggering 73 million individuals…may find that their data is at risk.” As these developments unfold, the implications for consumer privacy and corporate responsibility remain significant.
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