Millions of Verizon customers across the U.S. have begun receiving payments as part of a $100 million class-action settlement over alleged hidden administrative fees.
However, many recipients are expressing frustration over the unexpectedly low payout amounts, with some receiving as little as $2.37.
Here’s everything you need to know about the Verizon class action settlement payout, including who was eligible, how the funds were distributed, and why some customers received less than expected.
Background of the Verizon Lawsuit
The lawsuit, originally filed in 2023, accused Verizon of charging undisclosed administrative fees to postpaid wireless customers between January 2016 and November 2023.
Plaintiffs alleged that these fees were deceptive and not clearly communicated in their billing statements. Verizon denied any wrongdoing but agreed to a $100 million settlement to resolve the claims.
For more details on consumer protection laws, visit the Federal Trade Commission (FTC).
Who Was Eligible for the Settlement?
Customers who were billed for Verizon’s administrative charges between January 1, 2016, and November 8, 2023, were eligible to file a claim. The deadline to submit claims was April 15, 2024.
Those who successfully filed a claim before the deadline were entitled to receive compensation from the settlement fund, with initial estimates ranging from $15 to $100 per customer. However, as more claims were filed than expected, the individual payouts were adjusted accordingly.
How Were Settlement Payments Issued?
The payout process began in January 2025, with customers receiving payments via different electronic methods, including:
- PayPal
- Venmo
- Zelle
- Digital Mastercard gift cards
Customers were advised to check their registered email accounts or digital payment platforms for notifications regarding their settlement payments.
For more details on class action settlements, visit the U.S. Department of Justice.
Why Are Payouts Lower Than Expected?
Although the settlement initially estimated that claimants would receive a minimum of $15, the overwhelming number of filed claims resulted in a significantly lower per-person payout. The final distribution was based on a pro-rata system, meaning the available funds were evenly divided among all eligible claimants.
Some recipients reported receiving as little as $2.37, while others received amounts such as $4.89 or $14.81. This discrepancy sparked frustration among Verizon customers who had anticipated larger settlements.
A similar situation occurred in previous class-action settlements, such as the Equifax data breach settlement in which claimants received reduced payouts due to high claim volume.
Customer Reactions
Many customers have taken to social media platforms to express their dissatisfaction with the settlement. Some claimants believe the small payouts make the legal battle seem futile, while others argue that Verizon should have faced stricter penalties.
One customer shared on Twitter, “Verizon sent me $3.85 from the settlement. They could’ve kept it.” Others pointed out that legal fees and administrative costs might have further reduced the funds available for distribution.
What Does This Means for Future Lawsuits?
The Verizon class action settlement highlights the challenges of large-scale consumer lawsuits. While settlements provide some form of compensation, the final payout often depends on the number of claims filed and the structure of fund distribution.
For those looking to stay informed about class-action lawsuits, the Consumer Financial Protection Bureau (CFPB) offers resources on consumer rights and financial protection.
Final Thoughts
The Verizon class action settlement serves as a reminder for consumers to be vigilant about hidden fees and carefully review their billing statements. Although the final payouts were lower than expected, the lawsuit sheds light on corporate billing practices and the importance of transparency.
For more information about ongoing legal settlements, visit the U.S. Securities and Exchange Commission (SEC) for updates on corporate accountability and consumer rights.
If you were affected by the settlement and have concerns about your payment, you may contact the settlement administrator or check official updates on the Verizon settlement website.