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US Judge Approves $177 Million Settlement in AT&T 2024 Data Breach Lawsuits

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A U.S. judge granted preliminary approval on Friday to a $177 million settlement resolving class-action lawsuits against telecom giant AT&T (T.N) over data breaches in 2024 that exposed personal information of tens of millions of customers. U.S. District Judge Ada Brown in Dallas ruled that the settlement was fair and reasonable.

The settlement addresses claims stemming from breaches announced by AT&T in May and July of last year. Depending on the breach, customers who suffered losses “fairly traceable” to the incidents can receive payments of up to $2,500 or $5,000. After direct loss claims are paid, remaining funds will be distributed to customers whose personal data was accessed.

AT&T denied responsibility for the criminal acts but agreed to the settlement to avoid prolonged and costly litigation. The company expects final approval by the end of 2025 and plans to begin issuing payments early next year.

One breach involved the illegal download of about 109 million customer accounts from AT&T’s Snowflake cloud platform, exposing six months of call and text logs from 2022 for nearly all its customers. In March 2024, AT&T revealed a related data set released on the dark web, affecting approximately 7.6 million current and 65.4 million former account holders, with data dating back to 2019 or earlier.

The Federal Communications Commission (FCC) is also investigating the incidents. Last September, AT&T agreed to pay $13 million to settle an FCC probe into a 2023 data breach involving a cloud vendor that affected 8.9 million wireless customers. The FCC said the exposed data covered customers from 2015 to 2017 and should have been deleted by 2017 or 2018.

FCC Warns China Mobile of Potential Fines Over Non-Compliance in U.S. Probe

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The Federal Communications Commission (FCC) warned on Tuesday that it could impose fines on China Mobile for allegedly failing to cooperate with an investigation into whether its U.S. operations are circumventing American restrictions. The probe is part of a broader effort to ensure compliance with national security directives that have already barred several Chinese telecom firms from operating in the U.S.

According to the FCC, China Mobile has shown “misconduct” and “disregard” for regulatory authority by not providing the specific documents and information requested. The agency said the probe has been ongoing since November 2022, and that a supplemental request was sent in February this year. The company now has 30 days to comply before facing financial penalties.

Background and Concerns:

  • In 2019, the FCC determined that China Mobile was indirectly owned and controlled by the Chinese government, posing a national security risk due to the potential for cyber intrusions, espionage, and economic attacks.

  • The March 2024 probe includes nine Chinese companies, such as Huawei Technologies, ZTE, Hikvision, Dahua, China Telecom, and China Unicom Americas, all under suspicion of operating in ways that could sidestep U.S. bans.

  • FCC Chair Brendan Carr warned that some Chinese firms may be continuing operations under ambiguous interpretations of current restrictions.

Implications:

If China Mobile fails to respond within the specified timeframe, it may face escalating enforcement actions and monetary penalties, further straining U.S.-China technology and trade relations. The FCC’s stance signals increased vigilance in monitoring foreign telecom activity on U.S. soil, especially involving entities tied to state-backed ownership.

China Mobile has not yet issued a response.