In a major consumer rights victory, Verizon Wireless has agreed to a $100 million class action settlement in 2025, compensating millions of customers for undisclosed administrative fees added to postpaid wireless bills. This settlement follows allegations that the telecom giant misled customers by advertising fixed plan rates but failing to disclose extra monthly charges—costs that many say caused unnecessary financial stress.
Here’s what you need to know about the Verizon class action lawsuit, who qualifies for a payment, how to claim it, and when to expect your compensation.
Contents
Why Was Verizon Sued?
The lawsuit accuses Verizon of unfair billing practices, specifically adding “administrative or telco recovery fees” without clearly informing customers at the time of signup. These fees were described by Verizon as necessary to cover regulatory and network-related costs, but consumers argued they were not disclosed up front, violating consumer protection laws.
Rather than admit fault, Verizon opted to settle the case—a common legal move in class actions—while denying wrongdoing.
Verizon Settlement Overview
| Category | Details |
|---|---|
| Settlement Fund | $100 million |
| Eligibility Period | March 1, 2016 – November 8, 2023 |
| Claim Deadline | April 15, 2025 |
| Minimum Payout | $15 per eligible account |
| Maximum Payout | Up to $100 |
| Extra Payment | $1/month billed with admin fees |
| Payment Methods | Zelle, Venmo, PayPal, check, prepaid card |
| Official Website | verizonadministrativechargesettlement.com |
Who Is Eligible for the Verizon Settlement?
You qualify if:
- You had a Verizon postpaid wireless plan between March 1, 2016, and November 8, 2023.
- You were charged administrative or telco recovery fees during this period.
- You submit a valid claim with the required documents before April 15, 2025.
Proof of charges—such as old bills or account statements—can help strengthen your claim.
How to File a Claim for Verizon Settlement
You can claim your payout in one of two ways:
1. Online Submission
- Visit the official Verizon settlement site.
- Use your unique claim ID (sent by email or mail).
- Fill out the digital form and submit before the April deadline.
2. Email or Mail Submission
- Download and print the claim form from the website.
- Fill in the requested information.
- Email or mail the completed form using the contact info on the official site.
How Much Will You Receive?
The payout depends on how long you were billed with these fees. Here’s how it’s calculated:
- Base amount: $15 minimum per account
- Plus $1 for each month you were charged an admin fee
- Maximum cap: $100 per account
Example:
If you were charged for 24 months, your payout would be: $15 + (24 × $1) = $39
Why Are Some Payments So Small?
While some users may receive as much as $100, many will only get $15–$40 due to:
- High number of claimants (over 5.2 million)
- $33.3 million in legal fees
- Administrative and processing costs
- The remaining funds are split proportionally based on how long you were charged
When Will You Get Paid?
Payments are expected to begin January 6, 2025, pending final court approval. You’ll receive your money via the method you chose during the claim process:
- Digital payments (PayPal, Zelle, Venmo)
- Paper checks (mailed)
- Prepaid virtual cards
Important Notes
- This is not the end of Verizon’s admin charges. They can still apply them, but are now expected to provide better disclosure.
- You cannot dispute the payout formula—it’s court-approved.
- Settlements under $600 are typically not reported to the IRS, but check with a tax professional if unsure.
FAQs
Is the Verizon settlement taxable?
Generally no, if the payment is under $600. Always verify with your tax advisor.
Can I still file a claim?
Yes, if you meet the eligibility criteria and file before April 15, 2025.
Will Verizon stop charging admin fees now?
No, but they’re required to improve transparency and billing disclosures.
What if I didn’t get a claim ID?
You can still file on the official site using your account details.
