Verizon has agreed to pay $100 million to settle a class action lawsuit alleging the company charged customers misleading administrative fees over the past several years. The settlement could provide payouts to millions of current and former Verizon wireless customers across the United States.
Millions Eligible for $25-100 Settlement Payments
The lawsuit alleged Verizon charged customers up to $1.99 per month in administrative fees without clearly explaining that the fees were not government taxes or charges required by law. Plaintiffs accused Verizon of improperly using these fees as a way to advertise lower service rates than it actually charged.
Under the proposed settlement, Verizon has agreed to provide prepaid Mastercard debit cards or account credits to qualifying class members. Payout amounts will vary based on the total number of valid claims, but current estimates indicate class members could receive $25 to $100 each.
To be eligible, you must have been a Verizon wireless customer at any time between June 30, 2010 and January 4, 2024 and been charged an administrative fee by Verizon.
How to File a Claim
Verizon customers can visit www.VerizonClassActionSettlement.com and submit a claim form online. The deadline to file is XXXXX XX, 2024.
You’ll need to provide your name, current address, email address or phone number associated with your Verizon account, and verify you were charged an administrative fee. Claims may be validated against Verizon’s records, so be sure to provide accurate information about your account.
| Deadline | Website | Required Information | Estimated Payout |
|---|---|---|---|
| XXXXX XX, 2024 | www.VerizonClassActionSettlement.com | Name, contact info, account verification | $25-100 |
Settlement payments will be distributed after final court approval expected in early 2025. Those with valid claims should receive a notice by email or mail once payments begin processing.
Verizon Denies Wrongdoing Under Settlement
While agreeing to pay $100 million to settle allegations, Verizon has denied any wrongdoing related to administrative fees. As part of the proposed settlement agreement, Verizon does not have to change or alter how it charges administrative fees going forward.
Plaintiffs agreed to the tentative settlement terms prior to any class certification rulings or judgments on the merits of the case. Settlement negotiations between the two sides avoided prolonged litigation that could have taken years to resolve without any guarantee plaintiffs would prevail in court.
In a statement about the settlement, Verizon called the fees “valid” but said resolving the dispute through settlement was “in the best interest of all parties.” Some consumer advocates have argued Verizon should have been forced to more clearly disclose administrative charges to customers regardless of any admission of wrongdoing.
What Happens Next?
The class action settlement still requires final approval from the U.S. District Court for the Eastern District of California, which could come in early 2025 after deadlines have passed for class members to opt out of or object to the settlement terms. Distribution of payouts to Verizon customers who submit valid claim forms will begin shortly after settlement approval.
While up to $100 million has been allotted to pay customer claims, any unused funds will be donated by court order to one or more non-profit organizations. Settlement administrators also have discretion to pay valid claims on a pro rata basis if total claims exceed $100 million.
The settlement resolves 11 separate lawsuits consolidated into a single class action in 2021. It represents one of the largest lawsuits over fees and surcharges wireless providers like Verizon, AT&T and T-Mobile have faced in recent years. With administrative fees coming under increased scrutiny, other carriers could face similar legal challenges going forward.
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