Some Verizon customers may be eligible to claim part of a $100 million class-action settlement, but they’ll have to act soon to cash in.
The settlement resolves a lawsuit with Verizon Wireless subscribers alleging the mobile service provider tacked on an extra “administrative charge” to customers’ monthly bills to “extract additional cash” from them.
Here’s what to know about the settlement.
Why is Verizon paying $100 million to its customers?
Verizon is shelling out the money to settle a lawsuit filed by current and former customers last year. In the complaint, lawyers for Verizon users allege the company “deceived” subscribers by unlawfully tacking on an additional “administrative charge” to their service bills “without [their] consent.”
In addition, Verizon “never adequately or honestly disclosed” the fee to its customers before they subscribed to its services, and “uniformly charged them higher monthly rates than it advertised and promised,” lawyers said in the complaint.
Verizon denies any wrongdoing, according to the settlement website. The company did not immediately respond to CBS MoneyWatch’s request for comment.
Who is eligible to get a payout?
Current and former Verizon customers who had a postpaid wireless or data service plan and were charged an “Administrative Charge and/or an Administrative and Telco Recovery charge” between Jan. 1, 2016, and Nov. 8, 2023, are eligible to receive compensation under the settlement, the settlement agreement FOLLOW US ON GOOGLE NEWS