AT&T Reaches $184 Million Settlement Deal With Pensioners
Accused of shortchanging married workers, the wireless carrier maintained it did nothing illegal
WASHINGTON, July 13, 2026 – AT&T agreed Thursday to settle a class action lawsuit by pension recipients for more than $184 million. A federal judge will still have to sign off on the deal.
Pensioners had accused the wireless carrier of using out-of-date mortality and interest rate models, which resulted in married workers receiving lower payments than their single counterparts. AT&T maintained over the six-year litigation that its payment calculations did not violate the law.
The settlement would provide $149.1 million in additional pension benefits, with $113.5 million going to retirees and $35.6 million to current employees. That’s about 44 percent of the estimated damages, the settlement motion said
The workers’ attorneys could seek up to $35 million in legal fees.
AT&T would also have to review its payment calculations every ten years to ensure they complied with the 1974 law the workers sued under. The company was using factors it adopted in 1984 based on 1971 data, according to the proposed settlement.
According to an amended complaint filed in March 2024, there are more than 340,000 affected workers. About half are currently employed and half are retired.
An AT&T spokesperson said in an email that the company still disputed the workers’ allegations, but “elected to settle to avoid the continued expense and distraction of prolonged litigation.”
U.S. District Judge James Donato will still have to sign off on the settlement for it to take effect. The case was litigated in the U.S. District Court for the Northern District of California in San Francisco.
After six years of litigation, the case nearly went to trial before settlement discussions started last year. The parties' Thursday motion said the $113.5 million for retired pensioners was the largest ever settlement for similar claims.
