Payments go out in $100M Verizon settlement, but people are disappointed
(NEXSTAR) – Payments have finally started going out in the $100 million class action lawsuit Verizon agreed to settle, but the deposits are falling short of people's expectations.
The lawsuit, filed in 2023, alleged Verizon customers were hit with an administrative charge as part of a “deceptive scheme.” Verizon denied all wrongdoing, but agreed to the payout.
Affected users were told they would get up to $100 each. But now that the Venmo, Zelle, PayPal and bank deposits have started coming in, it seems that estimate was overly optimistic. In reality, people report receiving anywhere from $2 to nearly $15.
One person called it "absolutely ridiculous" on X. "I'm rich!" another joked.
While $100 million sounds like a lot of money (and it is), not all of that cash was sent straight into people's accounts. A third of the fund, or $33.3 million, was set aside for attorneys' fees. Another big chunk was needed to cover the cost of administering the settlement, going through the claims, and sending people their payments. That amount was not disclosed.
The remainder of the fund was split up among eligible recipients, with more going to people who were Verizon customers longer. The minimum estimate was originally $15 per person, plus $1 per month you were charged with the alleged deceptive fee.
But a lot of people were eligible to file a claim. All Verizon customers in the U.S. who “received postpaid wireless or data services from Verizon and who were charged and paid an Administrative Charge and/or an Administrative and Telco Recovery Charge between January 1, 2016 and November 8, 2023″ qualified.
As a result, the lawsuit got a lot of attention, and a lot of claims were filed. The more claims filed, the smaller each person's payment ends up being.
Verizon plans to keep charging the administrative fee in question, but has agreed to amend its customer agreement to better disclose it, according to the settlement.