Verizon Customers Disappointed by Settlement Payouts in $100M Lawsuit

Payments from the class action settlement over administrative fees fall far short of expectations, with some customers receiving as little as $2.

The $100 million settlement resolves allegations that Verizon charged deceptive administrative fees to postpaid wireless customers from 2016 to 2023.
Customers who filed claims by April 2024 were promised payouts ranging from $15 to $100, depending on their service duration and fees paid.
Many recipients report receiving payments well below the $15 minimum, with some as low as $2 to $3, due to high participation and legal costs.
A third of the settlement fund, approximately $33.3 million, was allocated to attorneys' fees, with additional funds used for administrative costs.
Verizon will continue charging the disputed fees but has agreed to update its customer agreements to better disclose them.