Payments have begun to be made in the $100 million class action lawsuit that Verizon agreed to settle. However, there is a problem in this process: the deposits are not meeting people’s expectations. This is a major controversy that once again puts the company under the critical eye of the entire American society.
This legal charge, filed in 2023, alleges that the company’s customers were hit by an administrative charge as part of a “deceptive scheme”. Verizon denied all wrongdoing in the class action lawsuit, but accepted payment. Users were also informed that they would receive up to $100 each.
Controversy over the payments made
Everything seemed to be going well and both parties accepted the settlement. But now that bank deposits have started to arrive at Venmo, Zelle and PayPal, it seems that estimate was too optimistic. In fact, people report receiving anywhere from $2 to almost $15 from this well-known company. This ignited controversy and many on “X” called this situation “ridiculous”.
While $100 million sounds like a lot of money, not all of that amount was sent directly to the accounts of the people affected. One third of the fund ($33.3 million), went to attorneys’ fees. Another large portion was needed to cover the cost of administering the settlement, analyzing claims and sending people their payments.
What remained of the fund was divided among eligible beneficiaries, while a larger portion went to people who had been Verizon customers for a longer period of time. The original minimum estimate was $15 per person, plus $1 per month charged for this supposedly deceptive fee.
A counterproductive factor for Verizon class action participants
Many individuals were eligible to file the claim. Specifically, these are the Verizon customers in the United States who qualified for the money:
- Those who received postpaid wireless or data services.
- Those who were charged and paid an administrative fee and/or a telecommunications recovery fee between January 1, 2016 and November 8, 2023.
As a result, the lawsuit received a lot of attention. This generated a lot of claims being filed, which ended up backfiring on those affected. The more claims that are filed, the lower the payment each person receives.
Despite all the controversy Verizon had with this class action lawsuit, and the time it took to reach a court settlement, the company plans to continue charging the fee in question. However, it agreed to modify its customer agreement to better disclose it. This will avoid future complications and misunderstandings.
Important clarifications on the class action payment
The official settlement website spoke before payments begin about possible mishaps due to insufficient funds. “If the Settlement Fund is not sufficient to pay all valid claims submitted after deducting amounts approved by the Court for the cost of settlement administration, attorneys’ fees and costs, and class representative incentive awards, then payments made to Settlement Class Members who submitted valid claims will be reduced from the initial amount allocated on a pro rata basis,” the page states.
This is what ended up happening and generated controversy among affected Vermonters. As could already be seen in the payment process, thousands of customers did not even reach the estimated $15 limit. This generated frustration and anger among citizens.
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