Verizon‘s $100 million class action lawsuit settlement has started to reach customers. However, the payouts have been much smaller than many anticipated. The settlement was intended to compensate those affected by undisclosed administrative fees. However, some individuals expressed their dissatisfaction on social media.
Here is everything to know about Verizon’s class action lawsuit settlement.
Verizon class action lawsuit settlement explained
In 2024, Verizon Wireless began distributing payouts as part of a $100 million class action settlement. This follows a lawsuit that the company had misled customers by charging undisclosed administrative fees. The lawsuit, filed in 2021, claimed that Verizon’s failure to disclose these extra fees in advertisements led to customers unknowingly paying more than the advertised price for their plans. Verizon agreed to settle the lawsuit in 2023, with the process of issuing payments beginning in 2024, following court approval.
Despite the large settlement amount, many customers expressed dissatisfaction with the size of their payouts. Some users voiced dissatisfaction on X (formerly Twitter) over receiving insignificant amounts, such as $2.37 and $4. Some users even joked about donating their payments, calling the class action process a “waste of time.”
The settlement is designed to compensate Verizon customers impacted by these disputed fees between January 1, 2016, and November 8, 2023. To qualify for compensation, customers must have been postpaid wireless or data plan users during this period and incurred administrative or telecom recovery fees. Eligible customers were required to submit claims by April 15, 2024, and payments will be issued after final court approval on March 22, 2024.
The compensation details include a base payment of $15 for each valid claim and a $1 bonus for each month the customer was charged the disputed fees, up to a maximum of $85. The total compensation for an individual claimant is capped at $100. Payments will be issued either by check or electronic transfer. Any unclaimed funds are treated as unclaimed property in accordance with state regulations.
