Verizon Settlement Payments Begin Rolling Out For Even Meager Amounts Than Expected
Edgar Cervantes / Android Authority
TL;DR
- Customers are finally starting to see payouts from last year’s $100 million Verizon settlement over its deceptive fee practices.
- Funny enough, the lawsuit never stopped Verizon from this practice and it’s since increased its admin fees further.
- Meanwhile, early payments are mostly in the $5 to $15 range, lower than most expected to see as the settlement claimed the smallest payouts would be $15 each.
Almost literally a year ago, we reported Verizon would continue to charge its $3.30 Administrative and Telco Recovery Charge even after settling a class-action lawsuit for $100 million. In fact, it has increased the fee since then. But what about the money it owes to folks from the settlement? The good news is those payments are going out now, it seems. The bad news? Expect next to nothing.
Class-action lawsuits rarely result in a major payout for anyone involved (other than the lawyers), but this particular Verizon settlement claimed some users would see up to $100 each, with a minimum of $15 per account plus $1 for each month they were charged fees. Unfortunately, the reality seems to be even more meager.
Reports are circulating on social media (via NBC Chicago) from users who have received their automatic payouts through Zelle or Venmo, typically in amounts ranging from $5 to $15. So, what’s with the discrepancy between what was promised and what was delivered? Unfortunately, it’s common for class-action lawsuits to involve a lot of legal red tape and fine print, and this settlement was no exception.
The website stated final amounts could be lower depending on how long claimants were with Verizon and how many customers filed claims. The real culprit behind this deduction, however, is fairly obvious. The website indicated that if the Settlement Fund wasn’t enough to cover all valid claims alongside court costs and attorney fees, the total amount divided among claimants could be smaller as well. In other words, most of the costs were eaten up by lawyers, court expenses, and other fees associated with the suit.
According to the court documents, attorney fees and total costs amounted to approximately $33.3 million. Additionally, there were at least 129 plaintiffs who received larger $3,500 “incentive awards” as part of the settlement.
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