The deadline is approaching for millions of current and former AT&T customers to claim a portion of a $14 million class-action settlement. The settlement resolves allegations related to a 2022 data breach where a third-party vendor was compromised, potentially exposing customer information.
Eligible individuals who were notified of the security incident must submit their claims by October 10, 2024, to receive a cash payment. The final amount per person will depend on the total number of valid claims filed.
Key Takeaways
- A $14 million settlement has been established for an AT&T data breach that occurred in January 2022.
- The breach involved a third-party marketing vendor, not AT&T's internal systems.
- Eligible customers who received a notification must file a claim by the October 10, 2024 deadline.
- Payments are estimated to be around $23 per person but could change based on claim volume.
Details of the Security Incident
The class-action lawsuit stems from a data security incident that occurred in January 2022. The breach did not happen on AT&T's own network but at one of its third-party marketing vendors. This vendor was responsible for managing certain aspects of customer sales and retention programs.
According to court documents, unauthorized individuals gained access to the vendor's systems, which contained files with AT&T customer information. This information was primarily related to device and monthly plan upgrade eligibility.
What Information Was Exposed
The data involved in this incident was specific and did not include more sensitive personal details like Social Security numbers or financial account information. The compromised data was known as Customer Proprietary Network Information (CPNI).
The exposed CPNI included the following data points for affected customers:
- First Name
- Wireless Phone Number
- Email Address
- The last four digits of the credit card used for payments
AT&T has maintained that more sensitive information was not part of this breach. However, the lawsuit alleged that the company and its vendor did not implement adequate security measures to protect this customer data.
What is CPNI?
Customer Proprietary Network Information (CPNI) is data collected by telecommunications companies about a subscriber's telephone calls. This includes the time, date, duration, and destination number of each call, as well as the type of network services a subscriber uses. Federal law requires carriers to protect this information.
The $14 Million Settlement Agreement
To resolve the legal claims and avoid the costs of further litigation, AT&T agreed to a $14 million settlement fund. The company did not admit any wrongdoing as part of the agreement. A U.S. District Court gave preliminary approval to the settlement, allowing the claims process to begin.
The fund will be used to cover cash payments to eligible class members, administrative costs for managing the settlement, and legal fees for the attorneys who represented the plaintiffs.
Settlement Fund Allocation
From the $14 million total, a significant portion is allocated to direct payments for affected consumers. The remainder will cover court-approved attorney fees, service awards for the individuals who initiated the lawsuit, and the expenses associated with notifying class members and processing claims.
The settlement's final approval hearing is scheduled for November 15, 2024. Payments will be distributed to those who filed valid claims only after the court grants final approval and any potential appeals are resolved.
Who Is Eligible to File a Claim
Eligibility for a payment from the settlement is specific. Not all AT&T customers are included. To be considered an eligible "Class Member," an individual must meet certain criteria.
Eligibility Requirements
You are considered a Class Member if you were an AT&T wireless customer in the United States and received a notification from the company about the January 2022 data security incident. These notifications were sent via email or postcard to the individuals whose information was identified as being part of the breach.
If you did not receive a specific notice about this incident, you are likely not eligible for a payment under this particular settlement. It is crucial to check your email, including spam folders, for any communication from AT&T or the settlement administrator regarding this case.
"To be eligible for a payment from the Settlement Fund, you must be a Class Member and you must complete and submit a Claim Form by the deadline," states the official settlement website.
How to Submit Your Claim
Filing a claim is a straightforward process that can be completed online. Eligible individuals must act before the deadline to receive their portion of the settlement fund.
The deadline to submit a claim is October 10, 2024. Claims submitted after this date will not be accepted.
Steps to File Your Claim
- Locate Your Notice: Find the email or postcard you received about the settlement. It will contain a unique Notice ID and Confirmation Code.
- Visit the Official Website: Go to the official settlement administration website to access the online claim form.
- Enter Your Information: Use your Notice ID and Confirmation Code to access the personalized form. If you cannot find these codes, the website provides an option to look up your information.
- Choose Your Payment Method: Select how you would like to receive your payment. Options typically include direct deposit, PayPal, Venmo, or a paper check.
- Submit the Form: Review your information for accuracy and submit the completed claim form before the October 10 deadline.
It is important to use only the official settlement website to file a claim. Be cautious of any third-party websites or phishing attempts that ask for personal information related to this settlement.
Expected Payout and Timeline
The exact payment amount each person will receive is not yet finalized. Initial estimates suggest a payment of approximately $23 per person. However, this figure is subject to change.
The final payment amount depends on several factors, including the total number of valid claims filed. If fewer people file claims, the individual payments may be higher. Conversely, if a very large number of people submit claims, the amount per person could be lower. The costs of administering the settlement will also be deducted from the fund before payments are calculated.
Payments will be sent out after the court grants final approval on November 15, 2024, and after any appeals process is complete. This means claimants may not receive their money until early 2025.
