Verizon $100 Million Settlement: Millions of Verizon Communications Inc. users have started getting cash payments after a $100 million class action settlement. The case accused the company of charging hidden fees and administrative costs for years without telling customers properly. The lawsuit became one of the biggest telecom settlements in the last ten years.
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The complaint said Verizon added “administrative charges” and “telecommunications recovery fees” to users’ bills that were not clearly mentioned in postpaid plan prices. The extra charges were small, just a few dollars a month, but they affected millions of accounts from January 2016 to November 2023. Verizon denied doing anything wrong, but agreed to the settlement “to avoid further legal costs” and, as the company said, “to put the matter to rest once and for all”.
How the Payments Work?
The US District Court ordered Verizon to create a $100 million fund to pay eligible customers. Each approved person gets a base amount of $15 plus $1 for every month they were charged the disputed fees. The total cannot go above $100 per user. Payments started in mid-2025 through Zelle, direct deposit, or checks sent by mail. The exact amount depends on how long the charges were applied they will see if the claim is valid and the administrative costs of the fund.
To receive money, customers needed to have a Verizon postpaid plan between 2016 and 2023 and file a valid claim before April 15, 2024. Anyone who missed the deadline or did not submit the claim form will not get any payment.
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Transparency
Even though individual payments are small, the case is important for all consumers. Groups that watch out for customers have warned about “junk fees” or hidden costs that hide the real price of services. This settlement sends a strong message for more honesty in billing and could lead to more rules in the industry.
The Federal Communications Commission (FCC) and the Federal Trade Commission (FTC) are now more interested in checking billing systems of major carriers. The Verizon settlement could be used as a guide for future lawsuits or policy changes.