Verizon customers eligible for the $100 million class action settlement may soon receive their payout. Those who have submitted a claim can check for updates on the payout date, payment amount, and other details concerning the Verizon Administrative settlement.
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Verizon Settlement Payout Date
Earlier this year, eligible Verizon customers were notified to submit claims for the Verizon administrative charges class action settlement. Customers who submitted their claims by April 15, 2024, in order to receive compensation from the administrator, should now anticipate their payments.
Final approval of the Verizon administrative charges settlements is pending. Payments in any class action process occur only after the Court grants final approval of the fairness and reasonableness of the settlement. The fairness hearing took place on March 22, 2024, at the New Jersey Superior Court.
Verizon customers who are class members affected by the company’s deceptive practices can expect payments following the court’s approval. The settlement administrator will disburse payments to valid claimants’ accounts. Assuming all goes smoothly, claimants can anticipate receiving payments in August or September 2024.
What’s the Verizon Administrative charges lawsuit about?
Verizon’s current and former customers (plaintiffs) alleged that the company imposed additional monthly administrative charges on customers who purchased post-paid wireless plans. They claimed Verizon’s advertising of these plans was misleading because it did not disclose these administrative charges.
According to the plaintiffs, Verizon unfairly implemented, charged, and increased these administrative fees, resulting in customers paying more than they expected. In November 2023, both parties agreed to settle the lawsuit for $100 million. The court has not confirmed the validity of the plaintiffs’ allegations or the defendants’ claims.
Verizon, the defendant, disputes these allegations and continues to deny any wrongdoing. The telecommunications company asserts its right to levy administrative charges to generate profit. However, Verizon has stated its intention to amend customer agreements to clarify these administrative charges moving forward.
Who will receive the Verizon Settlement payment?
Verizon settlement payments will be issued to eligible customers who meet the following criteria:
- Current and former Verizon customers in the United States who paid administrative charges or a telco recovery charge for postpaid wireless or data services between January 1, 2016, and November 8, 2023 are eligible as class members.
- Class members must have submitted their claims via the official Verizon Administrative Charges Settlement website by the deadline of April 15, 2024.
- Excluded from the settlement class are Verizon directors, officers, affiliated entities, and their family members.
- Class members who did not take action or opted out of the settlement before the deadline are not eligible to receive settlement payments.
Verizon Settlement Amount Distribution
Verizon’s former and current customers who have submitted valid claims for the settlement will receive payouts from the net settlement fund. The net settlement fund is derived after deducting various expenses from the gross settlement fund of $100 million, including:
- Administrative costs and fees
- Attorney’s fees, which can amount to up to 33% of the settlement amount ($33.3 million)
- Awards for settlement class counsel
- Awards for class representatives, up to $3,500 each, in recognition of their efforts
- Costs associated with distributing notices
- Other implementation expenses related to the settlement
After managing these expenses, fees, costs, and awards, the remaining amount from the $100 million settlement fund will be distributed among the class members.
Verizon Settlement Payout per person
The amount paid to class members depends on the net settlement fund and the number of valid claims approved by the settlement administrator. Here’s how the payments are calculated:
- Each valid claimant will receive a base payment of $15 as part of the settlement.
- In addition to the base payment, class members with valid claims will receive an extra $1 for each month they paid administrative charges or Telco Recovery charges for their post-paid Verizon wireless services during the class period.
- Reports indicate that the maximum payment a class member with a valid claim can receive under the settlement is $100.
Payments will be issued by the settlement administrator to eligible claimants. If the total payments exceed the net settlement fund, payments will be adjusted proportionally for each valid claimant.
How will you receive the Verizon Settlement payment?
Class members with valid claims will receive their settlement funds following court approval through either a paper check or direct deposit into their accounts. The court-appointed settlement administrator will distribute payments to eligible claimants, and any uncashed or undeliverable settlement checks will be handled as unclaimed property.
In the event of changes to your address or contact information, you can update your submitted claim form using your Notice Claim ID and confirmation code. It is crucial for claimants to ensure their current communication details are accurate to ensure they receive their payout without any issues, and to facilitate the administrator in locating their claim.
The final approval of the Verizon Administrative Charges Settlement by the court may result in adjustments to the settlement amount, as per court guidelines. Claimants are advised to regularly check the Verizon class action lawsuit settlement website for updates on the progress of the settlement.