Verizon customers who were eligible for a payout in a $100 million class-action settlement received payments that were considerably lower than anticipated, with some receiving as little as $5.33. The lawsuit alleged that Verizon unfairly charged customers a 'monthly administrative charge' without adequate disclosure.
Some Verizon customers anticipated receiving up to $100 as part of a $100 million class-action settlement, but payments distributed in early January proved considerably lower, with some reportedly receiving less than $5. The lawsuit, initially filed last year, alleged that Verizon unfairly charged certain account holders a 'monthly administrative charge' or ' telco recovery charge ' without adequate disclosure.
Despite denying any wrongdoing and asserting the lawsuit lacked merit, Verizon agreed to the settlement, according to the settlement website. Verizon claimed to have clearly identified and described the wireless consumer Admin Charge throughout the sales process, marketing materials, contracts, and billing statements. The company stated this charge aided in recovering certain regulatory compliance and network-related costs, emphasizing its commitment to transparency and clear disclosure of all consumer charges and fees. Eligible customers, identified by Verizon and notified via mail or email, comprised all current and former individual account holders charged the fee between January 1, 2016, and November 8, 2023. Claims were due April 15, 2024, and the settlement was declared effective September 20, 2024, with payments anticipated to begin distribution in January 2025. The settlement website initially projected payments of $100, with eligible claimants receiving a minimum of $15 plus $1 for each month they incurred the fees. However, some users confirmed to NBC Chicago that they received automatic payments via Zelle or Venmo, but these amounts significantly deviated from the expected $100, with one user reporting a payment of $5.33
Verizon Class-Action Settlement Payments Customer Charges Fees Lawsuit Administrative Fees Telco Recovery Charge
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