In 2024, Verizon Wireless resolved a class-action lawsuit by agreeing to pay a massive settlement of $100 million.
The lawsuit claimed that the company used misleading advertising practices by failing to clearly show extra fees, like administrative charges, which made the actual cost of their wireless plans higher than customers were led to believe.
Customers argued that Verizon’s ads made it appear as though the wireless plans were cheaper than they were, by leaving out information about additional fees.
These extra charges, which were not disclosed upfront, resulted in Verizon customers paying more than expected for their services.
The case centers around consumer protection laws that aim to prevent companies from misleading consumers with deceptive advertising.
The Federal Trade Commission Act is one such law that prohibits businesses from misleading their customers about pricing and charges.
Verizon Class Action Settlement Details
To resolve the lawsuit, Verizon has agreed to distribute $100 million to compensate affected customers. Here’s how the settlement will be divided:
- Base Payment: Every valid claim will receive a flat payment of $15.
- Monthly Service Bonus: In addition to the $15, eligible customers will get $1 for every month they were charged the disputed administrative fee, up to a total of $85.
So, if you qualify, you could receive up to $100 in total, depending on how many months you were charged the additional fees.
However, the actual payment each eligible customer will receive may vary, depending on how many valid claims are made and the length of time that the administrative charges were applied.
Who Is Eligible for the Settlement?
To be eligible for the Verizon class-action settlement, customers must meet the following conditions:
- Be a Verizon Customer: You must have been a customer of Verizon with a postpaid wireless or data plan from January 1, 2016, to November 8, 2023.
- Charged Administrative Fees: During this time, you must have been charged the disputed administrative or telecom recovery fees.
If you meet these criteria, you are likely eligible for the settlement. However, it’s important to note that the deadline to file a claim has already passed, and claims are no longer being accepted.
Verizon Class Action Settlement Payout Dates
Once the settlement gets final approval, Verizon will begin distributing payments to eligible customers. These payments will be sent by check or electronic transfer.
If a check is not cashed or if it cannot be delivered, the money will be treated as unclaimed property.
This means the funds will be returned to the settlement pool, and the relevant state unclaimed property rules will apply.
Any administrative costs related to unclaimed funds will be deducted from the total amount in proportion.
In Case You Missed It: How to File a Claim Under The Settlement?
The deadline to file a claim has passed, so new claims cannot be made. But if you missed the deadline, here’s a general overview of how the process worked for those who were able to apply:
- Visit the Settlement Website: The first step was to go to the official settlement website to check if you were eligible and to access the claim form.
- Obtain the Claim Form: You can download the form from the website or request it directly from the settlement administrator.
- Fill in Personal Details: The claim form asked for your name, contact information, and Verizon account details.
- Provide Proof of Charges: To support your claim, you needed to provide documentation, such as billing statements, that showed the extra administrative fees were charged to your account.
- Submit the Form: After completing the form and attaching any necessary documents, you will have submitted it either online or by mail before the deadline.
After submitting your claim, you will receive confirmation, and further instructions will be provided on the next steps.
Customers were also encouraged to keep checking for updates and to respond if any additional information was needed to process their claims.
Key Takeaways
- Verizon settled a class-action lawsuit for $100 million over deceptive advertising and undisclosed fees.
- Affected customers can receive up to $100 in compensation, with payments based on the number of months they were charged the disputed fees.
- The settlement is only available to Verizon customers who were charged the fees between January 1, 2016, and November 8, 2023.
- The deadline to submit a claim has passed, so no further claims can be made.
Consumers need to stay informed about class-action settlements and understand their rights when companies fail to disclose all fees associated with their products or services.
Note- Every piece of content is rigorously reviewed by our team of experienced writers and editors to ensure its accuracy. Our writers use credible sources and adhere to strict fact-checking protocols to verify all claims and data before publication. If any error is identified we promptly correct it and strive for transparency in all updates.
Archer Bannister is a journalist with 4 years of experience covering hard-hitting stories. Currently working with Mikeandjonpodcast, Archer specializes in delivering timely and in-depth updates on a variety of topics, including crime news, politics, and national issues affecting the USA. His expertise and dedication to delivering accurate, impactful news make him a trusted voice for audiences seeking to stay informed on critical topics.
