AT&T has reached a preliminary settlement of $177 million in a class action lawsuit concerning two significant data breaches that compromised the personal information of millions of customers, pending judicial approval.

The lawsuits stem from allegations of inadequate data protection, prompting a US District Judge to approve the settlement.

While AT&T has denied direct responsibility for the breaches, which were linked to a hacking group known as Shiny Hunters, the company has committed to compensating affected customers.

The first breach, attributed to Shiny Hunters, reportedly began in 2019, with data from over 70 million customers being put up for sale in March 2024.

A subsequent breach revealed in July 2024 involved a hack of AT&T's cloud provider, Snowflake, affecting nearly 109 million customers' call and text records.

AT&T confirmed on April 2, 2024, that 73 million customers were impacted by the earlier breach.

The settlement allocates $149 million for the 2021 breach and $28 million for the 2024 incident, reflecting the company's intent to resolve these issues without lengthy litigation.

This settlement aims to compensate individuals whose personal information was exposed due to AT&T's alleged failure to implement adequate protection measures.

Eligible current or former AT&T customers can receive compensation of up to $5,000 for the 2019 breach and $2,500 for the 2024 breach.

The claims process will commence on August 4, 2025, with notices sent to eligible claimants, and claims must be submitted by November 18, 2025.

Federal court approval of the settlement is anticipated in late 2025, which may prompt other telecommunications companies to enhance their data protection practices.

Community feedback indicates a growing demand for improved data management practices, as security continues to be a major concern for large firms.