Verizon Wireless faced a major class action lawsuit accusing the company of charging undisclosed administrative and billing surcharge fees to customers with postpaid wireless or data plans. The case, filed in New Jersey Superior Court, alleged that Verizon misled subscribers by failing to advertise these fees upfront, effectively increasing the overall cost of service without proper disclosure.
Details of the Verizon Class Action Lawsuit and Settlement
The lawsuit covered Verizon customers across the United States who received postpaid wireless or data services between January 1, 2016, and November 8, 2023, and were charged an “Administrative Charge” and/or an “Administrative and Telco Recovery Charge.” Plaintiffs alleged these fees were unfairly and deceptively imposed without proper notification or itemization on bills.
After lengthy litigation, Verizon agreed to settle the lawsuit for $100 million. The settlement fund is intended to compensate affected customers who file valid claims. Each eligible customer can receive a payment based on their account duration and charges paid, with estimated payouts ranging from approximately $15 to $100. The exact amount depends on the number of claims and distribution costs.
Claim Process and Eligibility
To be eligible, customers must have had a Verizon postpaid account during the class period and paid the contested fees. Claimants were required to submit claim forms by the deadline of April 15, 2024, either online via the official settlement website or by mail. Those who opted out or objected had until February 20 and 26, 2024, respectively, to exercise those rights.
Eligible claimants needed to provide their Verizon phone numbers and relevant billing information. The settlement also barred claimants from pursuing further legal action against Verizon concerning these fees once the settlement was finalized.
Impact and Customer Reactions
Payments from the settlement began to reach customers in early 2025, though some reported receiving amounts less than the expected minimum payout of $15, sparking dissatisfaction and questions about the distribution formula and administrative deductions.
The lawsuit brought attention to customer rights regarding transparent billing practices and highlighted the importance of clear disclosure of fees in telecommunications services. It also served as a cautionary tale for service providers about hidden fees and regulatory compliance.
Broader Legal and Industry Context
Verizon has faced multiple class action lawsuits in recent years concerning billing, privacy, and wage issues, reflecting increased legal scrutiny of telecom companies’ business practices. The administrative fee lawsuit is among the largest settlements in the industry, underscoring the financial and reputational risks of lacking transparency.
Telecommunications regulators and consumer advocates continue to push for greater protections and clearer billing standards to ensure customers are fully informed of all charges associated with their services.
Conclusion
The Verizon class action lawsuit over undisclosed administrative fees and the resulting $100 million settlement mark a significant victory for customer protections in the telecom sector. While some customers expressed frustration over payout amounts, the case sets an important precedent emphasizing transparency and fairness in billing.
As settlements conclude and new regulatory measures emerge, Verizon and other service providers are likely to take steps to improve their billing disclosures, reinforcing consumer trust and reducing future litigation risks.
