Verizon has agreed to pay $100 million to settle a class action lawsuit alleging the company charged wireless customers misleading administrative fees over the past several years. The proposed settlement could provide refunds of up to $100 per customer.
Settlement Details
Under the terms of the settlement, Verizon will establish a $100 million fund to provide cash payments to current and former wireless customers who paid certain administrative charges on their bills. Here are some key details about the settlement:
|Settlement Amount|$100 million
|Eligible Customers|Current and former Verizon wireless postpaid customers
|Eligible Time Period|February 2012 – June 2023
|Potential Refund|$25 to $100 per customer
|Deadline to File Claim|TBD
The settlement is still pending final approval, but customers could receive payments ranging from $25 to a maximum of $100 depending on the administrative fees paid over the period of February 2012 through June 2023.
How The Suit Started
The class action lawsuit originated in 2021 when a Verizon customer alleged the company used false and deceptive advertising regarding certain administrative charges.
The lawsuit claimed Verizon misled customers by charging them bogus “Administrative Charge” or “Federal Universal Service Charge” fees. The suit alleged these fees were deceptively labeled to make customers believe the charges were government-mandated when in reality they were simply extra hidden charges for Verizon’s own financial benefit.
Over 15 million current and former Verizon customers could potentially be eligible compensation from the landmark settlement.
Verizon Denies Wrongdoing
While agreeing to establish a substantial settlement fund, Verizon has denied any wrongdoing and made no admission of liability in the agreement.
In a statement, a Verizon spokesperson said “Verizon disputes the plaintiffs’ allegations and maintains that the company has acted properly at all times.” The settlement avoids further prolonged litigation, the statement added.
What Happens Next For Customers
The court still must grant final approval of the settlement agreement for payments to move forward. A final approval hearing is set for March 30, 2024.
Following court approval, Verizon will provide direct notice to eligible class members. Those covered by the class action will not need to take any action until the final settlement becomes effective.
A settlement website and claims process is expected to launch shortly after final approval. Customers must then submit valid claims to receive compensation. Stay tuned for further details on how to file your claim.
Based on prior class action settlements, customers can expect to see settlement checks issued within 3-6 months after final approval and after the claims period concludes.
Customer Reaction
Reaction among Verizon customers has been overwhelmingly positive regarding the potential for refunds. Many subscribers and former subscribers have taken to social media to vent their frustrations with hidden administrative fees over the years.
Some analysts believe the settlement could also encourage other major wireless carriers to reassess their own pricing practices and fee disclosures following intense public scrutiny from the high profile legal dispute.
Consumer advocates praised the proposed agreement for enabling customers to recoup charges they argue were unfair. Several nonprofit groups stated the settlement should send a strong message to the industry to be transparent with customers about service pricing.
While Verizon has not admitted wrongdoing, the settlement marks a major milestone in customer relations for the nation’s largest wireless carrier. The agreement aims to improve communication moving forward so that subscribers better understand what types of charges are actually government mandated versus discretionary.
This table summarizes opinions from various groups:
| Group | Opinion |
|---|---|
| Verizon Customers | Overwhelmingly positive, frustrated by fees |
| Consumer Advocates | Pleased with customer refunds, hope it sends pricing transparency message |
| Analysts | Could influence policies of other wireless carriers |
Stay tuned as further details unfold regarding the customer refund process for one of the largest class action settlements ever against the wireless industry.
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