Verizon Fraud Settlement Leaves Customers Disappointed With Tiny Payouts

💲 Verizon agreed to a $100 million fraud settlement
💲 Payments to customers have begun
😡 Customers are receiving far less than they expected

When Verizon agreed to pay $100 million to settle a class action fraud lawsuit, many customers expected a windfall.

Hardly.

Many are furious after the company began making the first payouts connected to the massive settlement.

What has been deposited into customer bank accounts will barely get you a cup of coffee in New Jersey.

Making matters worse, after deducting administration costs, attorney fees and other costs, many customers may not see a penny from the settlement.

What was the lawsuit about?

The lawsuit was about administrative fees that were being charged to Verizon customers who purchased post-paid wireless plans.

It was alleged that Verizon did not disclose these fees and charged them in a "deceptive and unfair manner."

Verizon admitted no wrongdoing, but did agree to settle the case before a New Jersey Superior Court Judge in January 2024. They agreed to pay $100 million.

Why are customers angry?

The payouts are a joke.

Originally, customers were told they could expect to be paid up to $100 depending on how long they were a customer and how long they paid the fees.

The settlement website still lists that as a possibility, but it does not appear anyone got anywhere close to that amount.

People have started posting on social media about the payouts they received. Most are between $3 and $15.

The money is being deposited directly into customer bank accounts.

Is there anything I can do?

Nope.

Unfortunately, this is common when companies settle large class action lawsuits.

The initial number may seem large, but it rarely ends with a windfall to customers who have been wronged.

Attorneys are entitled to between 25% and 35% of the settlement, and maybe more, depending on the complexity of the case. (A judge decides this).

There are administrative fees and other costs associated with actually making the payments, and the actually pool of money to be paid to the plaintiffs in cases like these are often reduced by nearly 50%.

Further impacting settlement amounts is how many people are eligible for payment and how many file a claim.

All of these factors have impacted the payouts in the Verizon case and customers have no recourse to claim a larger share of the money.