Verizon Class Action Settlement: If you’re a Verizon wireless customer, you might be eligible for a payout from the $100 million class action settlement. The lawsuit accused Verizon of charging undisclosed administrative fees, leading to higher-than-expected bills for millions of customers. Verizon agreed to settle the case without admitting wrongdoing, and now 1 million people are set to receive payments.
This article explains how much you could get, who is eligible, and when to expect your payment. We’ll also cover how to check your status and what to do if you haven’t received your share yet.
Verizon Class Action Settlement
| Detail | Information |
|---|---|
| Total Settlement Amount | $100 million |
| Eligible Customers | Verizon postpaid wireless customers charged administrative fees between January 1, 2016, and November 8, 2023 |
| Expected Payouts | Up to $15 per account + $1 per month the fee was charged, capped at $100 |
| Actual Payouts Reported | Many received $3 to $15 due to high number of claims and legal fee deductions |
| Payment Methods | Direct deposit, PayPal, Venmo, Zelle, Virtual Prepaid Card, or Physical Check |
| Claim Filing Deadline | April 15, 2024 |
| Payment Distribution Date | Payments began in January 2025 |
| Reason for Reduced Payouts | High number of claims and legal fees reduced individual payments |
The Verizon Class Action Settlement offers compensation to customers affected by undisclosed administrative fees. Although payouts were lower than expected due to the high volume of claims, the settlement highlights the importance of transparent billing practices. If you were eligible and filed a claim, check your payment status.
What Is the Verizon Class Action Settlement About?
The Verizon class action lawsuit was filed after customers complained about undisclosed administrative fees on their bills. These fees were allegedly increased without proper notice, leading to higher-than-expected costs for wireless services.
Why Was the Lawsuit Filed?
- Verizon was accused of misleading customers by not clearly disclosing these administrative fees.
- The lawsuit claimed that these charges were hidden within bills, giving customers the impression that they were paying less than they actually were.
- Verizon denied any wrongdoing but agreed to settle the case for $100 million to avoid prolonged litigation.
Source: USA Today
Who Is Eligible for the Verizon Class Action Settlement?
You may be eligible for a payment if you:
- Received postpaid wireless or data services from Verizon.
- Paid administrative charges and/or Telco Recovery Charges between January 1, 2016, and November 8, 2023.
- Submitted a claim before the deadline on April 15, 2024.
How to Check Your Eligibility For Verizon Class Action Settlement
Visit the Official Settlement Website and enter your Verizon account number or phone number to check your eligibility status.
How Much Could You Get From Verizon Class Action Settlement?
Expected Payouts
According to the settlement terms:
- Eligible customers were expected to receive a minimum of $15 per account.
- Additionally, customers would get $1 for each month they were charged the administrative fee, with a maximum payout of $100 per account.
Example Calculation:
- If you were charged the fee for 10 months, you could expect to receive $25 ($15 base amount + $10 for 10 months).
- If you were charged for 50 months, the expected payout would be $65 ($15 base + $50 for 50 months).
Actual Payouts Received
Despite these expectations, many claimants received significantly lower amounts. Reports indicate payments ranging from:
- $3.85 to $14.81 on average.
- Some as low as $2.37 due to the high number of claims and legal fee deductions.
Why Are Payments Lower Than Expected?
- The settlement agreement stated that if total valid claims exceeded the distributable funds, payouts would be reduced on a pro-rata basis.
- The high number of claims and legal fees deducted from the settlement fund resulted in smaller individual payments.
Source: Forbes
How Will Payments Be Distributed?
The settlement administrator began distributing payments in January 2025. Payment methods include:
- Direct Deposit: Payments are made directly into the bank account provided during the claim process.
- PayPal, Venmo, and Zelle: If selected, the payment is transferred to the corresponding digital wallet.
- Virtual Prepaid Card: A digital card is sent via email, which can be used for online purchases.
- Physical Check: Mailed to the address provided on the claim form.
Pro Tip:
If you selected a digital payment method but haven’t received your money, check your email’s spam folder for payment notifications.
Source: Verizon Class Action
$2,065 Average Tax Refunds from the IRS: Who Gets Them This Week? Check Eligibility Criteria
SSI Direct Deposits of Up to $1,450 to Be Paid in Advance This Week: Are You Eligible to Get it?
What If You Haven’t Received Your Payment Yet?
Check Your Payment Status
You can check your payment status by:
- Visiting the Official Settlement Website.
- Entering your claim number or phone number used during the claim process.
Possible Reasons for Delays
- Incorrect Payment Information: If bank account details were incorrect, the payment may have failed.
- High Volume of Claims: The large number of claims submitted has resulted in processing delays.
- Address Changes: If you moved, the check may have been sent to your old address.
Contact the Settlement Administrator if you believe there was an error or if your payment is delayed.
Why Did Verizon Agree to the Settlement?
Verizon chose to settle the lawsuit to:
- Avoid lengthy litigation costs and public scrutiny.
- Resolve customer complaints without admitting wrongdoing.
- Maintain customer trust and brand reputation by compensating affected users.
Although Verizon denies the allegations, it agreed to update its customer agreement to provide clearer explanations of administrative fees in future billing statements.
FAQs On Verizon Class Action Settlement
Q: Why did I receive less than the expected $15 minimum payment?
A: Payments were reduced due to the high number of claims and legal fees deducted from the settlement fund. The funds were distributed on a pro-rata basis among all valid claims.
Q: Can I still file a claim?
A: No, the deadline to file a claim was April 15, 2024. No late claims are accepted.
Q: What should I do if I didn’t receive my payment?
A: Check your status on the Official Settlement Website or contact the Settlement Administrator for assistance.
Q: Are these payments taxable?
A: Typically, class action settlements are not taxable, but it’s advisable to consult a tax professional for guidance.
