AT&T Inc. (NYSE:T) customers, both present and past, stand to receive up to $7,500 as part of a proposed $177 million settlement. This settlement is in response to two significant data breaches that affected millions of AT&T customers.

What Happened: AT&T Inc. has suggested a settlement amounting to $177 million. This sum includes $149 million for the initial class-action lawsuit and an additional $28 million for the second one.

The first data breach, revealed in March 2024, impacted 73 million account holders, with hackers obtaining personal information and disseminating it on the dark web. A subsequent breach in July 2024 compromised the call and text records of almost all AT&T customers.

According to the report by New York Post, the settlement is yet to receive approval, with a final hearing set for December 3 in the US District Court for the Northern District of Texas. Customers who had their data compromised can apply for compensation before the hearing.

They will be notified via an email from Kroll Settlement Administration and must submit a claim form by November 18.

Also Read: GameStop to Pay $4.5 Million Over Alleged Privacy Violations Involving Facebook Data Sharing

Customers affected by the March 2024 breach can claim up to $5,000, while those impacted by the July breach can claim up to $2,500. Customers who were affected by both breaches could be eligible for up to $7,500.

AT&T will require evidence of losses associated with the breaches. Payouts are anticipated to commence by the end of the year, but may be postponed if appeals are lodged after the hearing.

Why It Matters: This settlement proposal comes as a significant development for AT&T customers who were affected by the data breaches.

The proposed compensation not only acknowledges the inconvenience and potential harm caused by the breaches, but also serves as a reminder of the importance of robust data security measures for companies handling sensitive customer information.

The outcome of the final hearing will be closely watched, as it could set a precedent for future data breach settlements.

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