Verizon Class Action Lawsuit Settled; Eligible Users To Get $100

If you are a Verizon customer then this week can bring good news for you. The wireless network operator settled its class action lawsuit. The settlement now will pay eligible customers $100.

Due to a lawsuit alleging that Verizon charged fees that were “unfair and not adequately disclosed,” eligible customers are receiving postcards or emails advising them to register a claim by April 15 to collect up to $100.

The plaintiffs claimed that Verizon’s “administrative charge” was “misleading” as it was not included in the monthly stated price of their plan and was applied in a “deceptive and unfair manner.” Verizon refuted the allegations.

In its defense, the company issued an official statement that stated that it “clearly identifies and describes its wireless consumer admin charge multiple times during the sales transaction, as well as in its marketing, contracts, and billing.”

Four separate lawsuits that were brought together in a New Jersey court—the state where Verizon is headquartered—were the basis for the settlement. Even though it was approved in December, a “fairness hearing” is still required, and it is set for March.

Not only are so-called “junk fees” mocked by customers, but the Biden administration is also upset about them. The Federal Trade Commission released a draft regulation in October of last year that would forbid corporations from imposing unstated or deceptive fees and mandate that they disclose all costs upfront.