The Verizon Wireless Settlement 2025 has garnered significant attention as Verizon agreed to pay up to $100 million to resolve a class-action lawsuit alleging undisclosed administrative fees charged to customers.
This comprehensive article details who qualifies for this settlement, how much money can be expected, the claim process, and answers common questions regarding the settlement.
Overview of the Verizon Wireless Settlement 2025
In 2024, Verizon agreed to settle a class-action lawsuit filed in the Superior Court of New Jersey. The suit claimed that Verizon charged its postpaid wireless customers undisclosed administrative fees, described as an “administrative charge” and/or an “administrative and Telco Recovery charge,” from January 1, 2016, through November 8, 2023, in a deceptive and unfair manner. Verizon has denied wrongdoing but agreed to settle to avoid prolonged litigation.
As part of this resolution, Verizon allocated a $100 million settlement fund to compensate affected customers. The settlement was finalized and payouts started rolling out in early 2025.
Who Is Eligible to Receive Payment?
The settlement applies exclusively to Verizon customers in the United States who:
- Had a postpaid wireless or data plan with Verizon between January 1, 2016, and November 8, 2023,
- Were charged the “administrative charge” and/or “administrative and Telco Recovery charge” during this period,
- Filed a valid claim within the given timeline.
Eligibility does not require customers to specifically prove their payments, as Verizon’s internal records verify accounts that incurred these fees. Both current and former Verizon postpaid account holders who meet these criteria may be entitled to payment.
Financial Compensation Details
The exact payment amounts vary based on several factors. Verizon initially set the minimum compensation at $15 per eligible account. In addition to the minimum, customers receive $1 for each month their account was charged the administrative fee during the qualifying period. However, payments are capped at a maximum of $100 per claimant.
Since the total settlement fund must cover all valid claims plus administrative and legal fees, the payout may be prorated if the fund does not cover the total claims. Early reports indicate that some claimants received less than the minimum $15 due to pro-rata adjustments.
The table below illustrates a simplified example of potential payout calculations for Verizon customers:
| Duration of Service with Fees Charged (Months) | Base Amount ($15) | Additional $1 Per Month | Total Estimated Payout (Capped at $100) |
|---|---|---|---|
| 3 months | $15 | $3 | $18 |
| 12 months | $15 | $12 | $27 |
| 50 months | $15 | $50 | $65 |
| 85 months | $15 | $85 | $100 (Cap) |
Note: Actual payouts may differ depending on total claim volume and fund distribution.
How to Claim Payment?
To receive a settlement payment, eligible customers had to:
- Receive a notice by mail or email about the settlement,
- Submit a valid claim form online or by mail before the deadline,
- Provide required information such as Verizon phone number, Notice ID, and confirmation code from the settlement notice,
- Choose a preferred payment method (e.g., check, bank transfer, prepaid Mastercard).
The deadline for submitting claims was April 15, 2024. Those who did not file claims by this date forfeited their right to participate in the settlement. Additionally, customers had the option to opt out or object to the settlement before February 2024.
Why Some Payments Were Less Than Expected?
Despite the advertised minimum of $15 per claim, customers have reported receiving smaller amounts in early 2025 when payments were distributed. This discrepancy is due to several reasons:
- The settlement fund had to cover legal fees, administrative costs, and incentive awards, which reduce the total money available for claimants,
- The volume of claims filed was high, requiring prorated individual payments to fit within the $100 million fund,
- Verification processes adjusted payments based on actual administrative fees charged.
These factors resulted in some recipients receiving as little as $2 to $3, much lower than originally anticipated.
Impact and Legal Considerations
This settlement highlights the legal scrutiny over undisclosed fees in telecommunications services. It also aligns with increasing federal attention, including proposed Federal Trade Commission rules, aimed at preventing hidden or misleading charges by service providers.
Verizon, while settling, continues to maintain its right to charge administrative fees but has amended its customer agreements to improve disclosure transparency.
Verizon Wireless Settlement 2025: Summary Table
| Aspect | Details |
|---|---|
| Settlement Amount | Up to $100 million |
| Eligible Customers | US-based Verizon postpaid wireless/data users charged admin fees between Jan 2016 – Nov 2023 |
| Payment Range | $15 minimum base + $1 per month charged; Maximum $100 |
| Claim Deadline | April 15, 2024 |
| Opt-Out Deadline | February 20, 2024 |
| Objection Deadline | February 26, 2024 |
| Final Settlement Approval Hearing | March 22, 2024 |
| Payment Distribution Start | Early 2025 |
| Reason for Reduced Payouts | Pro-rata distribution due to fund limits and legal fees |
Frequently Asked Questions (FAQs)
Q1: Who qualifies for the Verizon Wireless Settlement 2025?
A1: Customers with Verizon postpaid wireless or data plans who were charged administrative fees between January 1, 2016, and November 8, 2023, and who filed a valid claim.
Q2: How much money can I receive from this settlement?
A2: Eligible customers could get a minimum of $15 plus $1 for each month their account was charged, capped at $100; actual payouts may be lower due to prorated distribution.
Q3: What was the deadline to file a claim for the Verizon settlement?
A3: Claims had to be submitted by April 15, 2024. Late claims are not eligible for payment.
Q4: Do I need to prove I was charged the administrative fees?
A4: No, Verizon’s records verify eligibility, so customers do not need to provide proof.
Q5: Why did some people receive less than the advertised minimum payout?
A5: Payments were reduced due to the settlement fund needing to cover legal fees, admin costs, and a large number of claims filed, resulting in pro-rata payouts.
