In Re: AT&T Inc Customer Data Security Breach Litigation
3:24-cv-00757
N.D. Tex.Aug 1, 2025Background
- Over 57,000 individuals, represented by certain law firms, sought to arbitrate claims arising from the AT&T data breach class action, objecting to their inclusion in a proposed settlement class.
- The court had preliminarily approved a proposed settlement and set procedures for objections and a final approval hearing, along with a limited injunction against initiating parallel arbitrations.
- Claimants' counsel attempted to intervene, arguing for mass arbitration and objecting to the opt-out requirements, but their evidence of arbitration agreements was insufficient and they had already violated the court’s injunction by initiating thousands of arbitration demands.
- After intervention was denied, claimants filed an emergency motion seeking an expedited stay pending interlocutory appeal, just days before the class notice deadline.
- The court found claimants lacked standing and had delayed unnecessarily in seeking emergency relief, undermining any claimed urgency.
- The requested interlocutory appeal and stay were denied as unwarranted and disruptive to the class action process.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Stay proceedings pending appeal | Stay is necessary to protect claimants’ arbitration rights | No basis or evidence for a stay; motion is disruptive | Denied; claimants lack standing and failed to justify a stay |
| Right to appeal without intervention | Can appeal class prelim approval order, even as non-parties | Only parties and proper intervenors can appeal | Denied; non-parties cannot appeal |
| Mass opt-out from class settlement via counsel | Mass opt-outs should be permitted for represented claimants | Opt-out must be individualized to protect integrity | Denied; individualized opt-outs are necessary |
| Certification for interlocutory appeal under §1292(b) | Significant legal questions merit immediate appellate review | No exceptional issue or substantial difference of opinion | Denied; no substantial ground for interlocutory appeal |
Key Cases Cited
- Marino v. Ortiz, 484 U.S. 301 (Only parties or proper intervenors may appeal an adverse judgment)
- In re Lease Oil Antitrust Litig., 570 F.3d 244 (Non-parties cannot generally appeal district court rulings)
- Benisek v. Lamone, 585 U.S. 155 (Party seeking emergency relief must act with due diligence)
- In re Deepwater Horizon, 819 F.3d 190 (Individualized opt-out requirements are common and proper in complex MDLs)
- In re JPMorgan Chase & Co., 916 F.3d 494 (Distinguishing opt-in versus opt-out procedures for class members under FLSA and Rule 23)
