Verizon Class-Action Settlement Update 2024: Payouts, Details, and What You Need to Know

In 2024, Verizon Wireless resolved a class-action lawsuit with a $100 million settlement. The lawsuit accused Verizon of deceptive advertising practices, specifically for failing to disclose additional fees—such as administrative charges—that made the actual costs of plans higher than advertised. This led customers to select plans under the impression that they were cheaper than they actually were.

Allegations Against Verizon

The plaintiffs in the lawsuit argued that Verizon’s omission of these administrative fees violated consumer protection laws, including the Federal Trade Commission Act, which prohibits deceptive or misleading advertising. By not including these charges in the advertised prices, Verizon created a misleading perception of affordability that misled customers.

Verizon Class-Action Settlement Details

Compensation Breakdown

Verizon agreed to establish a $100 million settlement fund to compensate eligible customers who were charged the disputed administrative fees. Here is how the payments are structured:

• Base Payment: Every valid claim will receive a flat payment of $15.
• Monthly Service Bonus: Customers will receive an additional $1 for each month they were charged the disputed fees, capped at $85.
• Maximum Payout: The total compensation for each claimant is capped at $100, depending on the number of valid claims and the duration of fees paid.

Eligibility Criteria

To qualify for a payout, customers needed to meet the following requirements:

• Be a Verizon customer with a postpaid wireless or data plan between January 1, 2016, and November 8, 2023.
• Have been charged the disputed administrative or telecom recovery fees during this period.

Settlement Payout Timeline

After the settlement’s effective date on September 20, 2024, the distribution process began. Eligible claimants can expect to receive their payments in early January 2025 via checks or electronic transfers.

Important Notes on Distribution

• Unclaimed Payments: If any settlement checks remain uncashed or undeliverable, they will be classified as unclaimed property and returned to the respective Settlement Class Member under state regulations. Administrative costs for processing these funds will be deducted proportionately.
• Payout Process: Payments will be distributed only to those who successfully submitted their claims before the filing deadline.

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Claim Process (Now Closed)

While the claim submission window has closed, the process included the following steps:

1. Confirm Eligibility: Claimants verified their eligibility via the official settlement website.
2. Download and Fill Out the Form: Applicants provided personal details and account information.
3. Submit Documentation: Claimants uploaded or mailed supporting documents, such as billing statements, showing the disputed fees.
4. Submit Claims Before Deadline: All forms were required to be submitted before the deadline to qualify for compensation.

Claimants who successfully completed the process received confirmation and further updates on their payouts. Unfortunately, those who missed the deadline will not receive compensation.

Transparency in Advertising: A Final Note

This settlement serves as a stark reminder of the importance of transparency in corporate advertising. Hidden fees, such as Verizon’s administrative charges, can erode trust and lead to significant legal consequences.

For consumers, the case underscores the importance of scrutinizing billing details and reporting discrepancies to ensure fair treatment under consumer protection laws. By staying vigilant and informed, customers can help hold companies accountable for misleading practices.