Verizon lawsuit settlement payments fail to satisfy many

Verizon recently started sending out settlement payments to customers as part of a class action lawsuit, but they weren’t quite as hefty as some may have hoped. Last year, Verizon agreed to a $100 million settlement over undisclosed administrative fees that customers were being charged. The settlement promised up to $100 for each customer who filed a claim.

However, as customers started receiving their payments this week, many were disappointed to find that the actual payout was much lower. While the settlement agreement guaranteed a minimum of $15 per valid claim, plus an additional $1 for each month of service where the administration fees were paid, the final amounts varied widely.

Some customers reported receiving as little as $4.89, while others saw payments of around $14.81. Even the person behind the Tech Life Channel on X, formerly Twitter, shared that they got a Mastercard gift card for just $2.37.

If you were hoping for a $100 windfall from the Verizon lawsuit settlement and only received a small amount, you’re not alone. The final payout depended on various factors, including the total number of claims submitted. Additionally, applicable taxes and any fees charged by the payment services chosen by each applicant could also impact the final amount received.

It’s worth noting that part of the settlement involved lawyers requesting $33 million in fees last year. While Verizon denied any wrongdoing in the lawsuit, they agreed to pay $100 million to affected customers as part of the settlement. As a result, Verizon will revise its Customer Agreement to include updated Administrative Charge disclosures moving forward.

For those wondering if they were eligible for a payment from the Verizon settlement, current and former customers with wireless or data services who were charged administrative fees between January 1, 2016, and November 8, 2023, were able to file a claim. However, the deadline for submitting claims was April 15, 2024.

In a class action lawsuit like this one, individuals sue on behalf of themselves and others who have similar claims. Once approved, all members of the class typically receive a payout, except for those who choose to opt out of the group. The main takeaway here is that while the settlement payments from Verizon may not have been as high as expected, they do represent a resolution to the legal disputes over undisclosed administrative fees.