Understanding Verizon's $100 Million Settlement: What Customers Need to Know

Verizon's recent agreement to pay $100 million in a class-action lawsuit marks a significant moment for both the company and its customers. This development stems from a lawsuit that challenged the fairness of Verizon's administrative fees, a decision that could impact many who've used their services. Here's what you need to know.

Background of the Lawsuit

The lawsuit, filed in the Superior Court of New Jersey, put into question the manner in which Verizon charged administrative fees to its customers. The court's decision on December 15, 2023, to approve the settlement, brings an important resolution to the case, which began with a complaint in California in 2021. This complaint accused Verizon of misleading customers by promoting certain monthly rates for their services, only to charge higher rates later through an additional 'Administrative Charge.'

Details of the Settlement

Verizon has chosen to settle the matter by creating a $100 million fund, despite denying the claims made in the lawsuit. This settlement is significant as it is one of the largest of its kind relating to administrative fees. Rich Young, a spokesperson for Verizon, stated that the company has always been transparent about its fees, though they have agreed to make changes in how these charges are described as part of the settlement agreement.

Who is Eligible?

The settlement includes U.S. customers who had postpaid wireless phone or data plans with Verizon and were charged administrative fees from January 1, 2016, to November 8, 2023. These customers are now entitled to claim their share of the settlement, although the exact amount each will receive depends on several factors. These include the length of time they used Verizon's services and the total number of customers who file a claim.

Filing a Claim

To participate in the settlement, eligible customers must fill out a claim form, indicating their preferred method of payment—be it check, bank transfer, or a digital payment service. The deadline for this submission is April 15, 2024. It's important for customers to complete this process accurately to ensure they receive their rightful share of the settlement.

Opting Out

Customers also have the option to opt out of the settlement class. This allows them to retain the right to pursue individual legal action against Verizon over the issues raised in the class-action lawsuit.

Conclusion

This settlement underscores the importance of corporate transparency and consumer rights. As a Verizon customer, if you believe you are eligible, it's crucial to understand the process and your rights. While this blog provides an overview, always seek professional legal advice for your specific situation.