Verizon Wireless agreed to dish out $100 million to settle a class-action lawsuit that alleged the company unfairly charged an administrative fee — and customers are eligible to receive as much as $100 each.
The settlement covers all current and former account holders with wireless or data services that were charged Verizon’s administrative fee between Jan. 1, 2016, and Nov. 8, 2023, according to Barron’s.
Verizon will send a notice via mail or email to those eligible, who must file their claim by April 15.
Upon receiving a notification, customers can visit a landing page to submit their claim using the ID and confirmation code included on their notice.
The minimum payout will be $15, plus $1 for each month the customer paid the charge, which a lawsuit filed in New Jersey last month claimed was a “deceptive and unfair,” undisclosed administration fee, Barron’s reported.
The lawsuit could cover as many as 50 million customers nationwide, per the outlet, with some eligible for as much as $100 depending on how long they were a Verizon subscriber and how many people end up filing claims.
Those who wish to opt out of filing claims to their share of the settlement can do so by Feb. 20.
By opting out of the settlement, the customer retains their right to sue Verizon about the issues presented in the lawsuit, Barron’s reported.
However, if a customer receives an eligibility notice and does nothing, they surrender their payment and right to sue the company.
Court-approved amounts for settlement administration, attorneys’ fees and other costs will be deducted from the settlement fund.
The charges in question started at 40 cents a month for each phone line in 2005, according to the complaint, but have since increased multiple times, rising to $3.30 a line in 2022.
The fee was applied to each phone line on a customer’s account, meaning a family plan that has 10 lines, the maximum amount of prepaid lines available, pay 10 administrative charges a month.
Verizon has denied the allegations in the lawsuit, and didn’t admit to any wrongdoing upon reaching the settlement.
Verizon has also said it would continue to charge the administrative fee — and that it even has the right to increase it — but as part of the settlement, it would amend its customer agreement to better disclose the monthly charge, according to a court document reviewed by Barron’s.
“Verizon clearly identifies and describes its wireless consumer Admin Charge multiple times during the sales transaction, as well as in its marketing, contracts and billing,” a company spokesperson told The Post on Thursday.
“This charge helps our company recover certain regulatory compliance, and network related costs. As always, our Company stands committed to transparency and the clear disclosure of all consumer charges and fees.”
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