In 2023, Verizon Wireless was involved in a class action lawsuit that compiled together various disputes and resulted in a settlement of $100 million. The dispute contended that Verizon charged “Administrative Fees” for postpaid wireless customers, which were not adequately disclosed to customers in contracts, agreements, or business documents.
Why Was Verizon Sued?
The plaintiffs claimed that Verizon:
- It did not disclose its administrative charges.
- Misled customers by advertising lower prices than they paid.
- Continuously increased these fees over time without proper notice.
- Though Verizon denied wrongdoing, it agreed to a settlement to avoid prolonged legal proceedings.
What Was the Lawsuit About?
The lawsuit alleged that Verizon employed unscrupulous billing practices, including monthly “administrative” fees that were not disclosed in the advertised prices or during the sign-up process. Customers added that this entire approach was inherently unfair and misleading, particularly given that the fees were added outside of the supposed window period of promotional plans.
The multi-district litigation captured headlines in 2023 when several claims were consolidated and tried in a single federal court in New Jersey for a master argument. Claimants argued that the fees were misleading and deceptive, designed to give the impression that the actual mark advertised was deceivingly less than the exact mark.
Who Was Eligible For Verizon Wireless Class Action Lawsuit?
You were eligible for Verizon Wireless Class Action Lawsuit compensation if you:
- Used a Verizon postpaid wireless or data plan between January 1, 2016, and November 8, 2023
- Were charged administrative or Telco recovery fees during that time.
- Filed a valid claim by the deadline: April 15, 2024.
Verizon Wireless Class Action Lawsuit Payout Per Person
The settlement offers the following payout structure:
- Base Payment: $15 per eligible account
- Bonus: $1 for each month you were charged the fee
- Maximum: $100 total payout per customer
- Example: If you paid the fee for 50 months, your payment would be $65 ($15 base + $50 bonus).
Claim Submission Deadline
The deadline for submitting a claim for Verizon Wireless Class Action Lawsuit was April 15, 2024, which is the cutoff date. Claims received after this date are likely not eligible.
How to File a Claim for Verizon Wireless Class Action Lawsuit
No further payments are to be made for receiving a claim after the deadline. Accounts to be issued payments will have their funds issued by check or electronically. In the event of non-payment, individuals seeking clarification or assistance should contact the settlement administrator or visit the dedicated settlement site for further guidance.
Opting Out or Objecting
Customers had the option to opt out of the settlement or object to its terms by sending a written request to the settlement administrator by February 20, 2024. Opting out preserved the right to pursue separate legal action against Verizon regarding these fees.
When Will You Be Paid?
Payments are expected to begin in January 2025. Customers could choose how to receive their money, including:
- Check
- PayPal
- Venmo
- Zelle
- Virtual prepaid cards
Checking Claim Status
Claimants could track the status of their payments through the settlement administrator’s website. Ensuring accurate contact and payment information was crucial to avoid delays.
Public Reaction
The settlement has elicited mixed reactions. While some customers appreciated the compensation, others expressed dissatisfaction with the modest payout amounts, especially given the initial expectations. Social media platforms featured comments from recipients who received as little as $3.55, questioning the value of the settlement.
Lessons for Consumers
This case underscores the importance of scrutinizing billing statements and being vigilant about hidden fees. Consumers are encouraged to:
- Regularly review their service agreements and billing statements to ensure accuracy and completeness.
- Stay informed about potential class-action lawsuits that may affect you.
- Act promptly when notified about eligibility for settlements to ensure they don’t miss claim deadlines.
Conclusion
The Verizon Wireless Class Action Lawsuit 2023–2025 case serves as a reminder always to read the fine print in service agreements. While Verizon maintains that its billing was transparent, the settlement marks a significant win for customers advocating for pricing clarity.