Objection Filed Over Proposed AT&T Data Breach Class Action Settlement

AT&T data breach settlement payouts do not fairly compensate customers or adequately punish the telecom giant for recklessly disregarding the safety of consumer data, according to one impacted business owner

Although AT&T announced in June that it will pay $177 million to settle data breach lawsuits being pursued over two massive security failures, not all customers are happy with the projected payouts, and some have filed objections to the proposed class action settlement agreement.

The tentative deal seeks to resolve all claims stemming from two separate data breaches, including one in March 2024 that affected more than 70 million people, and another that exposed the private text messages and cell phone records of tens of millions of customers.

As a result, the company has faced both individual and class action lawsuits over the AT&T data breaches, each alleging that the company failed to put in place adequate data security measures to protect the personal identifying information of its customers. This left millions of users exposed to identity theft, financial fraud and other privacy risks.

In June 2024, given the similarities of the cases being pursued throughout the federal court system, all AT&T data breach lawsuits were centralized in the Northern District of Texas under U.S. District Judge Ada E. Brown for coordinated discovery and pretrial proceedings.

A year later, in June 2025, a $177 million AT&T settlement was announced by parties involved in the litigation, which Judge Brown provided tentative authorization to proceed. However, not all plaintiffs are supportive of the agreement.

One plaintiff, August Wakat, filed an objection to the proposed settlement (PDF) on August 11, on behalf of himself and his business Poe Boy Fleming Auto Salvage, Inc. saying his harms could only be resolved through an individual trial.

Wakat, whose data was compromised in the March 2024 attack, argues that the settlement is inadequate to address his and others’ harms, and that the proposed settlement payouts let AT&T off the hook for willful disregard of proper cybersecurity procedures.

“The data breach was not an isolated incident but occurred over a prolonged period exceeding one year, during which AT&T was placed on notice of multiple security vulnerabilities and failed to take corrective measures. This amounts to willful disregard for Plaintiff’s rights and a pattern of gross negligence, if not intentional misconduct.”

– August Wakat, AT&T data breach plaintiff

He called on the court to reject the proposed settlement agreement or, alternatively, exclude his claim from the settlement and allow him to pursue an individual complaint.

Proposed AT&T Data Breach Settlement

If approved, the settlement would include two payout funds: $149 million allocated for individuals affected by the March 2024 internal system breach, and $28 million reserved for those impacted by the July 2024 breach involving data stored on a third-party cloud platform hosted by Snowflake.

As part of the agreement, AT&T also agreed to enhance its data security protocols and will provide confidential documentation to class counsel outlining its remedial efforts.

The court began accepting claim submissions on August 4. Affected consumers have until November 18 to apply through the official AT&T data breach settlement website.

The settlement establishes two separate classes, each with its own eligibility criteria and compensation limits.

• AT&T 1 Settlement Class: U.S. residents whose personal data—such as names, birth dates, phone numbers or Social Security numbers—was exposed in the internal system breach. Eligible claimants may receive up to $5,000.
• AT&T 2 Settlement Class: Current or former AT&T customers whose metadata, including call logs and tower connection information, was accessed during the Snowflake cloud platform breach. Eligible claimants may receive up to $2,500.

Some consumers may qualify for compensation under both classes. While AT&T denies any wrongdoing, the settlement aims to provide financial relief and avoid the uncertainty of extended litigation.

A final approval hearing is scheduled for December 3, 2025.