Verizon Agreed to a $100 Million Settlement Over Allegations of Secret Fees — Here's How to Get Paid The combined complaint originated from a California lawsuit filed in 2021.

By Amanda Breen

Key Takeaways

  • Verizon settled a class-action lawsuit alleging unfairly charged and insufficiently disclosed administrative fees for $100 million.
  • Eligible Verizon customers charged administrative fees between January 2016 and November 2023 may be entitled to payment.

Some Verizon customers might receive a payout from the wireless communications giant in 2024.

Facing accusations of imposing undisclosed administrative fees in a combined lawsuit filed on November 10, Verizon agreed to a proposed $100 million settlement, The New York Times reported.

Related: Verizon, Unions Agree to Pay Raises, New Jobs to End Strike

The complaint originated from a California lawsuit filed in 2021, which accused Verizon of "prominently advertising certain monthly rates for postpaid wireless service plans" before tacking an "Administrative Charge" onto customers' bills.

Americans are now spending more than $65 million on fees every year, according to the White House's estimates. In October, the Biden Administration called on "all agencies to reduce or eliminate hidden fees, charges, and add-ons for everything from banking services to cable and internet bills to airline and concert tickets."

The Verizon settlement was approved by the New Brunswick, New Jersey Court on December 15. On Wednesday, court-appointed legal counsels extended advisories via email and mailed postcards to parties eligible for the claim.

Verizon denies surprising customers with hidden fees. Rich Young, a spokesman for the company, said that Verizon "clearly identifies and describes its wireless consumer admin charge multiple times during the sales transaction, as well as in its marketing, contracts and billing," per the NYT.

Related: 'Resort Fees' and Other 'Junk Fees' May Soon Be a Thing of the Past—Here's Why

U.S.-based Verizon customers who were charged the disputed administrative fees between January 1, 2016, and November 8, 2023, have until April 15, 2024, to stake their claim.

Depending on the number of claimants and the duration of service used, eligible customers could see a reimbursement of up to $100. Customers have been instructed to fill out a form specifying their preferred reimbursement method, which includes check, bank transfer or digital payment services.

Amanda Breen

Entrepreneur Staff

Senior Features Writer

Amanda Breen is a senior features writer at Entrepreneur.com. She is a graduate of Barnard College and received an MFA in writing at Columbia University, where she was a news fellow for the School of the Arts.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

'I Love Doing Product Reviews': Bill Gates Stepped Down from Microsoft in 2020, But Admits He Still Spends 15% of His Time Working at the Company

In a new interview with the Wall Street Journal, Gates also said he is still close with Microsoft's CEO Satya Nadella.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business News

Elon Musk's DOGE Is Hiring People Eager to 'Work Long Hours' to Eliminate 'Waste, Fraud and Abuse' in the Government. Here's How to Apply.

The Department of Government Efficiency is hiring U.S. citizens to help cut spending and headcounts in the federal government.

Business News

'Everyone Can Profit From It': What Is DeepSeek? China's 'Cheap' to Make AI Chatbot Climbs to the Top of Apple, Google U.S. App Stores

DeepSeek researchers claim it was developed for less than $6 million, a contrast to the $100 million it takes U.S. tech startups to create AI.

Living

9 Ways to Attract Good Energy Today and Every Day

Good energy can boost our feelings of well-being, dissolve feelings of anxiety and improve communication.

Business News

Uber's CEO Says Drivers Have About 10 Years Left Before They Will Be Replaced

Uber CEO Dara Khosrowshahi says the jobs of human drivers are safe for the next decade, but after that, another type of driver will take over.