A federal judge has signed off on AT&T's $177 million data-breach settlement. The sources provide no payment date for claimants. Kroll had received roughly 4.9 million claim forms, but the court said that preliminary count could change as deficient claims were resolved. Anyone who missed the deadline can't sign up now.
Senior U.S. District Judge Sidney A. Fitzwater of the Northern District of Texas granted final approval on Oct. 2, subject to a change in how leftover money gets handled. Claim forms were due Dec. 18, 2025, and approval doesn't reopen that deadline.
The numbers riding along with the approval headlines — up to $5,000 for one class, up to $2,500 for the other — are caps on documented-loss claims. They aren't estimates of what a typical claimant will receive. Reaching either one took proper proof filed with the claim. Claimants who took the tiered cash option instead were quoted contingent estimates: $39 to $40 for AT&T 1 Tier 1, $7.50 to $8.10 for AT&T 2 Tier 2 and $6.50 to $7.10 for AT&T 2 Tier 3. The $5,000 cap is 125 times the $40 top-tier estimate.
Two funds, two different incidents
The settlement sets up two non-reversionary cash funds, meaning the money can't go back to AT&T. Together they hold $177 million: $149 million for the AT&T 1 class and $28 million for the AT&T 2 class.
AT&T 1 covers living U.S. persons whose covered data turned up in the first incident. That could mean combinations of names, addresses, phone numbers, email addresses, dates of birth, account passcodes, billing account numbers and Social Security numbers.
AT&T 2 covers AT&T account owners, line users and end users caught in the second incident. There the data was call-record metadata: customer phone numbers, numbers contacted, interaction counts and total call durations. A small subset also had cell-site identification numbers exposed.
Why there's still no payment date
The settlement agreement calls for electronic payments or paper checks within 60 days after its defined Effective Date. Neither the order nor the other reporting reviewed for this story says when that date arrives. FOX 13 Seattle, covering the approval, found no specific distribution date and reported that payments still hinge on the appeal period running out and claim review being finished.
Approval settles how much money exists and how it's divided. It doesn't settle when the money moves. The available record doesn't show whether anyone has appealed, and an appeal could delay finality, and payment with it.
What comes out of the funds first
Fitzwater approved $59 million in attorneys' fees, which the order describes as one-third of the combined settlement funds. He also approved $18,856,175.48 in administration expenses incurred so far, and reserved judgment on further estimated expenses. Deductions approved to date come to $77,856,175.48, about 44% of the $177 million, with more administration costs still undecided.
Kroll had logged 4,918,073 claim forms as of the claims report the court considered. The court warned that the count could shift as deficient claims are sorted out, so treat it as preliminary rather than a final list of approved recipients. It's a poor basis for estimating an average payout. The tier estimates likewise depend on the final number of valid claims, plus fees and administration expenses.
One piece of the order tilts toward claimants. Any money left over has to be considered first for redistribution to class members who filed, where that's feasible. A cy pres distribution is permitted only if another direct distribution isn't feasible.
If you filed, or wish you had
- If you selected a tiered payment instead of documenting losses, the contingent estimates were $39 to $40 for AT&T 1 Tier 1, $7.50 to $8.10 for AT&T 2 Tier 2 and $6.50 to $7.10 for AT&T 2 Tier 3. Those amounts aren't guaranteed.
- Missed the Dec. 18, 2025 deadline? There's no way in now. Final approval doesn't create a second chance to join.
Approval also isn't a judicial finding that AT&T admitted wrongdoing. According to FOX 13 Seattle, the company has denied wrongdoing and said it settled to avoid the expense and uncertainty of prolonged litigation.