Verizon
mobile phone customers could share a proposed $100 million class action settlement over monthly fees that people suing the communications company claim were unfairly charged and improperly disclosed. But those who want to claim their share of that money need to act by April 15.
A lawsuit in New Jersey said U.S. customers who signed up for Verizon’s wireless service plans at certain monthly rates ended up paying more than what was advertised because of administrative fees, which weren’t disclosed its advertisements or representations.
Customers who filed the lawsuit said that Verizon “implemented, charged, and increased the Administrative Charge in a deceptive and unfair manner.”
Verizon Communications could not immediately be reached for comment. Verizon has denied that it did anything wrong or that the lawsuit has any merit, according to a notice of the proposed settlement.
The charges, starting at 40 cents a month for each phone line in 2005, have increased multiple times, rising to $3.30 a line in 2022, according to the complaint. Charges were applied to each phone line on a customer’s account, so a family plan with five lines would pay five administrative charges a month.
Verizon has said it would continue to charge the administrative charge and has the right to increase it, but that as part of the settlement, the company will amend its customer agreement to better disclose those administrative charges, according to a court document.
For the proposed settlement, eligible customers are being notified by email or mail. They include Verizon postpaid wireless or data services customers who were charged and paid an administrative charge or an administrative and telco recovery charge between Jan. 1, 2016, and Nov. 8, 2023.
To stake a claim on the settlement, current and former Verizon mobile customers have to file for it online at this site or by mail.
The lawsuit could cover as many as 50 million customers nationwide. Eligible consumers who file claims by the deadline could get up to $100, but the amount could vary depending on how long they were Verizon subscribers and how many others file claims.
Court-approved amounts for settlement administration, attorneys’ fees and costs, and other costs will be deducted from the settlement fund. The minimum people could receive is $15, plus $1 for each month the customer received wireless or data services and paid the administrative charge.
The size of the settlement is likely not going to be material to Verizon’s financial results. Analysts expect full year 2023 net income of $19.8 billion when the company reports earnings later in January, according to FactSet. Such class action lawsuits and settlements with companies aren’t uncommon.
People can opt out of the settlement by Feb. 20 and give up their claims to the cash, but retain their right to sue Verizon about the issues in the lawsuit, according to information accompanying the notice of settlement. Those who do nothing won’t get any payments and give up their right to sue.
Write to Janet H. Cho at [email protected]
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