Verizon customers, it’s time to check your accounts! The long-awaited payouts from the $100 million class-action lawsuit settlement are finally rolling out.
But before you start planning how to spend your windfall, let’s dive into the details of what you can expect to receive.
The Lawsuit: What Happened?
Back in 2021, Verizon found itself in hot water when customers accused the telecom giant of sneaking in undisclosed “administrative fees” on their monthly bills. These sneaky charges, which many customers didn’t even notice, added up to a significant amount over time.
The lawsuit alleged that Verizon was essentially padding its profits by misleading customers about the true cost of their service plans.
Settlement Details:
After lengthy negotiations, Verizon agreed to settle the lawsuit for a whopping $100 million. Now, that might sound like a lot of money, but when you consider the millions of customers affected, individual payouts were bound to be more modest.
According to the settlement terms, eligible customers were supposed to receive $15 per account, plus an extra dollar for each month they were charged the controversial administrative fee. The maximum payout was capped at $100 per customer.
What Are People Getting?
As the first wave of payments hit bank accounts in early January 2025, many customers were left scratching their heads. Social media lit up with reports of surprisingly small payouts, with some users sharing screenshots of deposits as low as $2.37.
One disgruntled customer tweeted, “Got my payout from the Verizon lawsuit!!! These lawsuits are a joke, waste of time.” Another chimed in, “Class Action Lawsuits are ridiculous. Look how much the Verizon one was,” after receiving a mere $4.
So, what gives? Why are the actual payouts so much lower than expected?
Factors Affecting Your Payout
Several factors come into play when determining individual settlement amounts:
1. Number of claimants: The more people who filed valid claims, the smaller each individual share becomes.
2. Length of service: Customers who had Verizon service for longer periods during the class period (January 1, 2016, to November 8, 2023) were eligible for higher payouts.
3. Legal fees and administrative costs: A significant portion of the settlement fund goes towards covering attorneys’ fees and the costs of administering the settlement.
4. Pro-rata distribution: If the total value of all valid claims exceeds the available settlement fund, payouts are reduced proportionally to ensure fair distribution.
What to Do If You’re Disappointed
If you’re feeling let down by your settlement amount, you’re not alone. However, it’s important to remember that class-action lawsuits are primarily designed to hold companies accountable for unfair practices, rather than provide substantial individual compensation.
Here are a few things to keep in mind:
- Check your eligibility: Make sure you met all the criteria for receiving a payout.
- Verify your payment method: Ensure that the settlement administrator has your correct payment information on file.
- Be patient: Payments are being distributed in waves, so yours may still be on the way.
- Consider the bigger picture: While individual payouts may be small, the lawsuit has forced Verizon to be more transparent about its fees going forward.
