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 include current and former Verizon mobile users in the U.S. who paid any administrative charge or “telco recovery charge” between January 1, 2016, and November 8, 2023. These customers are receiving notifications via postcards or emails to file a claim.
The payout is at least $15 and may increase depending on how long the customer used Verizon services and the number of claims filed. Customers have until April 15, 2024, to submit a claim. They can choose their preferred payment method, including check, Venmo, or bank wire.
The $100 million settlement fund will be used to pay settlement class members. It will also cover the costs of sending notices, distributing payments, other administration expenses, and court-awarded attorneys’ fees. Any service awards for the plaintiffs will also come from this fund.
Customers who do not file a claim will forfeit their right to sue Verizon over the issues raised in the lawsuit. Some people are excluded from this settlement. Excluded are the judges and their families, Verizon and its affiliates (including officers and directors), and anyone who requested exclusion
