The former and current eligible customers of Verizon Communications who have filed their claim before 15 April 2024 over the Verizon administrative class action settlement can expect their settlement soon. The claimants can read the article to get the payout date update along with relevant settlement details.
Verizon Settlement Payout Date
On 22 March 2024, the fairness hearing of the Verizon Administrative settlement was held, where the court gave preliminary approval to the proposed settlement. The eligible class members have received the claim notice to submit their claim to receive the applicable settlement amount from the $100 million settlement fund.
Later on 26 April 2024, the court oversaw the settlement and granted the final approval to the Verizon Class administrative settlement. However, few people have objected to the settlement and filed an appeal in the court which has halted the further proceedings of the settlement.
According to the settlement agreement, the claimants with valid claims may have received the settlement amount within 90 days of settlement, however, with the appeal, the settlement administration cannot distribute the payment until the appeals are resolved. The official Verizon administrative settlement website will soon update you about the settlement payout date.
The appeals can take a month or two to resolve, so the claimants can expect the payout in September 2024, if it is resolved.
Why is Verizon Communications facing the settlement?
According to the settlement, Verizon has charged a deceptive fee scheme against Verizon Wireless Customers. The plaintiffs alleged that the former and current customers of Verizon who purchased the post-paid wireless plan were charged an administrative charge, which was not included in the post-paid plan.
The plaintiffs claim that Verizon advertised the monthly rates for Verizon’s post-paid wireless services. When customers signed up for the service they charged higher monthly rates than the promised and advertised plan calling it an administrative charge, which indicates the administrative charges were smartly and decisively imposed on the customers.
After signing up, the customer became aware of the administrative charges only when they received the bill for the Verizon postpaid wireless plan. Over the years, the company has increased its administrative charges, which indicates it uses the administrative charges to hike its profit.
The plaintiffs have filed a lawsuit for this unfair and misleading advertisement practice against Verizon company. The plaintiffs and defendant agreed to settle the lawsuit with a $100 million settlement in November 2023.
Who is entitled to get the Verizon Settlement Payout?
Under Verizon administrative settlement, Verizon US customers who meet the following eligibility requirements will be eligible to receive the settlement amount:
- You had or have a Verizon postpaid wireless plan account holder in the US, received the post-paid data or wireless services, and were charged administrative charges between the class period ( 01 January 2016 and 8 November 2023).
- All former and current Verizon consumers who paid the administrative charges during the class period are the class members.
- The class members who have submitted the valid claim by 15 April 2024 will be eligible to receive the Verizon settlement payout.
How much will you receive from Verizon’s $100 million Settlement?
Verizon will pay the finalized settlement fund of $100 million, however, the claimants will not receive the payment from this settlement fund. The settlement fund first cover the following expenses and the remaining fund will be distributed among the claimants:
- Administrative costs
- Attorney fees and costs awarded by the court for settlement class counsel
- Plaintiffs service awards awarded by the court
- Incentives wards to class representatives
- Other expenses and costs to execute the settlement
After all the above settlement expenditures and awards are deducted from the $100 million settlement, the remaining amount will be called as Net Settlement Fund, from which the claimants will receive the settlement payment.
According to the settlement agreement calculation, valid claimants can expect a settlement amount of $100 under the Verizon administrative settlement. However, it is not the exact amount, the amount you will receive can be lower depending on how long you were a Verizon customer and got the post-paid wireless services.
The Net settlement funds will be distributed among the valid claimants in the following manner:
- The settlement administration will first allocate the $15 into the valid claimant’s accounts then they will distribute the $1 amount for the months you received the Verizon post-paid wireless services and paid the administrative charges under the plan you bought.
- The maximum payment for the Verizon settlement class period is expected around $100, so the customers have the chance to receive the $100 payout.
- The payout amount per person can be reduced in the future if the net settlement fund is not enough for the valid claimants based on the pro-rata basis.
How will the Verizon Administrative settlement payments be sent?
The Verizon Administrative class action settlement administrator will send the applicable payments to the valid claimants either through checks or electronic methods. The claimants must have chosen their payment method when they filed the claim for the settlement by 15 April 2024.
The administration will settle your payment via your chosen payment method when the appeals are resolved. The Verizon payment checks that remain uncashed or undeliverable due to any reason will be treated as the unclaimed property of the settlement. The settlement administration will deduct the additional administrative cost for the unclaimed paper checks from the amount assigned to the claimants.
That’s why the claimants are advised to inform the settlement administration if they change their address register in the claim form or Verizon records to receive their settlement amount. Any claimants who wish to make such changes in their submitted claim form can email or send the letter to the Settlement administrative mailing address to report and update your claim form.
The Verizon administrative settlement is halted because of the appeal and until the appeals are resolved, the claimants will not receive their final settlement amount, so to stay updated keep your eye on the Verizon Administrative settlement website.