Verizon has agreed to settle a significant $100 million class action lawsuit in 2025, addressing customer complaints about hidden administrative fees. The lawsuit stems from the telecom giant’s failure to disclose certain charges, referred to as “administrative fees,” that were added to customers’ bills for their postpaid plans between March 2016 and March 2023. The undisclosed fees led to legal action, as consumers faced unexpected financial burdens.
The main objective of this settlement is to provide compensation to individuals who were affected by these hidden charges. The amount will be distributed to those who meet the eligibility criteria, compensating them based on the extent of their financial loss due to these undisclosed fees. This settlement aims to deliver financial relief to the affected customers, ensuring they receive justice.
Verizon Class Action Settlement Overview
- Authority: Verizon Wireless
- Program Name: Verizon Class Action Settlement
- Amount: $100 million
- Eligibility: Verizon postpaid users between March 2016 and March 2023
- Claim Deadline: April 15, 2025
- Payment Methods: Direct deposit, paper checks, virtual cards, Zelle, PayPal, Venmo
- Category: Latest News
- Official Website: Verizon Administrative Charge Settlement
Eligibility for the Verizon Class Action Settlement
To qualify for the settlement, the following criteria must be met:
- You must have had a Verizon postpaid account or data plan.
- You must have been charged administrative fees or telecom recovery fees between April 1, 2016, and November 8, 2025.
- You must submit a claim by the deadline of April 15, 2025.
- Documents such as postpaid bills showing the administrative charges must be submitted with your claim.
How to Claim Your Verizon Class Action Settlement
You can file your claim via two methods:
- Online Submission:
- Visit the official website for claim submission.
- Complete the online form and submit it.
- Once submitted, you will receive a confirmation number and a unique claim ID via email or postal mail.
- By Email:
- Obtain the claim form from the official website.
- Fill in the necessary details and send the completed form to the email address provided on the website.
How Much Will You Receive from the Verizon Settlement?
The settlement payouts are based on how much a customer was charged in administrative fees. Here’s a breakdown:
- Base Payment: $15 for all eligible claimants.
- Additional Compensation: An extra $1 for every month an administrative fee was charged.
- Example: If you were charged a fee for 24 months, your payout would be:
$15 (base payment) + ($1 * 24 months) = $39.
- Example: If you were charged a fee for 24 months, your payout would be:
However, due to the high volume of claims (over 5.2 million applicants), many individuals will receive smaller payments, typically between $2 and $15.
Why Are the Payments So Small?
The total payout amount was $100 million, but a significant portion of the funds went toward legal fees and administrative costs. Legal fees alone amounted to $33.3 million. Additionally, the remaining funds were divided proportionally based on how much each individual was charged.
When Will the Payments Be Sent?
The settlement payments will be distributed after the court’s approval, which took place on January 6, 2025. The preferred payment methods are:
- Virtual Prepaid Cards
- Paper Checks by Mail
- Zelle
- PayPal
- Venmo
FAQ,S
Is the Verizon Class Action Settlement Payout Taxable?
Payments under $600 are typically not reported to the IRS, but it’s always best to consult a tax professional for specific advice.
Will Verizon Continue to Charge Administrative Fees?
Yes, Verizon may still charge administrative fees but with improved transparency and disclosure.
Can I Challenge the Payout?
No, once the payout has been calculated and distributed, it is final and cannot be contested as the formula was court-approved.
