The Verizon class action lawsuit has ended in a colossal settlement, and claimants will soon receive their compensation.
Verizon Communications Inc. has agreed to a $100 million settlement in a class action lawsuit alleging that the company charged customers undisclosed administrative and recovery fees between January 1, 2016, and November 8, 2023. The settlement aims to resolve claims that Verizon’s billing practices violated consumer protection laws.
Verizon Class Action Lawsuit Settlement Details
Eligible customers who filed valid claims by the April 15, 2024 deadline may receive compensation. Each approved claimant is entitled to a base payment of $15, plus $1 for each month they were charged the disputed fees, up to a maximum of $100. The actual amount received depends on the number of valid claims submitted and the duration of the disputed charges.
Payments began in mid-2025 and are being distributed via direct deposit, Zelle transfers, or mailed checks, depending on the payment method selected by the claimant. The distribution process is ongoing, and customers are advised to monitor their chosen payment method for their settlement funds.
Eligibility Criteria for Verizon Settlement Payout
To qualify for the settlement, individuals must have been enrolled in a Verizon postpaid wireless plan between January 1, 2016, and November 8, 2023, and have been charged administrative or recovery fees during that period. Verizon’s records were used to determine eligibility, and customers who received a settlement notice were automatically considered for compensation.
Legal Background
The lawsuit, filed in the U.S. District Court for the Northern District of New Jersey, accused Verizon of misleading customers by adding administrative and recovery charges to their bills without proper disclosure. These charges were allegedly not included in the advertised plan prices, leading to higher-than-expected bills for many customers.
Verizon has consistently denied the allegations, asserting that the charges were legitimate and in compliance with applicable laws. However, the company agreed to the settlement to avoid the time and expense of continued litigation.
Consumer Impact
The settlement provides financial relief to affected customers, many of whom had been unknowingly paying the disputed fees for years. While the individual payouts may seem modest, they represent a significant acknowledgment of the issue and offer a measure of restitution to those impacted.
Consumer advocacy groups have highlighted the importance of this settlement in promoting transparency and accountability within the telecommunications industry. They emphasize the need for companies to clearly disclose all fees and charges to customers to ensure informed decision-making.
Looking Ahead
The Verizon settlement serves as a reminder for consumers to regularly review their billing statements and question any unfamiliar charges. It also underscores the importance of holding companies accountable for their billing practices and ensuring that customers are not subjected to hidden fees.
For those who believe they may be eligible but did not file a claim by the deadline, it’s advisable to consult the official settlement website or contact the settlement administrator for guidance on any potential recourse or future opportunities for compensation.
