How to Secure Your Portion of Verizon’s $100 Million Settlement

Verizon, the communications giant, has agreed to pay a $100 million settlement to resolve a class-action lawsuit that accused the company of charging undisclosed and unfair administrative fees. The lawsuit originated in New Jersey, where Verizon is headquartered, and was a culmination of four different lawsuits.

The lawsuit accused Verizon of a “deceptive fee scheme” where customers were charged higher monthly rates than advertised due to an added “administrative charge” on their monthly bills. The plaintiffs claimed these fees, which started at 40 cents per line per month in 2005 and increased to $3.30 by 2022, were not adequately disclosed and were set based on Verizon’s internal revenue targets. Verizon has denied the allegations, stating that it clearly identifies these charges, which are used to cover costs such as regulatory compliance, network-related costs, cell site rents, and maintenance.

As part of the settlement agreement, Verizon pledges to make these fees more transparent to customers in the future. However, the company states it will continue to charge administrative fees, and these fees may increase.

Eligible customers, which include current and former Verizon mobile customers in the United States who paid any administrative charge and/or “telco recovery charge” between January 1, 2016, and November 8, 2023, are receiving notifications via postcards or emails to file a claim. The payout is at least $15 and might be more depending on the duration of the customer’s use of Verizon and the number of customers who file a claim. Customers have until April 15, 2024, to file a claim and can choose their preferred method of payment, including check, Venmo, or bank wire.

The $100 million settlement fund will be utilized to make payments to settlement class members, cover the costs of sending notices, distributing settlement checks or electronic payments, and other administration expenses, as well as to pay court-awarded attorneys’ fees and expenses for settlement class counsel and any service awards for the plaintiffs.

Customers who choose not to file a claim will forfeit any right they may have to sue Verizon about the issues raised in this lawsuit. Some customers are excluded from this settlement, including all judges overseeing this action and their families, Verizon and affiliated entities and individuals, including Verizon officers and directors, and those who have submitted a valid request for exclusion per the settlement agreement procedures.