Verizon Class Action Settlement 2025: Payment Status & Why Amounts Are Lower Than Expected

David, a colleague of mine, checked his Venmo last Tuesday and discovered an unexpected deposit in the amount of $6.42. The deposit was made by “Verizon Administration Settlement Administrator.” He had forgotten to file a claim he heard of online nine months prior for a class-action settlement.

“I thought the amount was $100?” “I thought it was supposed to be $100?” he said, pointing at the notification on his mobile. “Did I make a mistake with my claim?”

David isn’t the only one. Since January 7, 2020, Verizon customers have received settlements ranging between $2.37 up to $100. Most of these payments fall between $5 and 15. People were shocked and disappointed when they realized that their settlements had been significantly less than the “up to 100” advertised.

If you are searching for “Verizon Class Action Settlement Payout” or “when will Verizon Class Action Settlement be paid”, this comprehensive guide covers everything. It explains what the lawsuit is about, who qualifies, why payments have been lower than expected and how to check payment status.

Learn More, When is Social Security’s retirement age?

What the Verizon class action lawsuit was actually about

Esposito et al. Cellco Partnership d/b/a Verizon Wireless accused Verizon of charging its customers “Administrative charges” and “Telco recovery charges” without properly disclosing this fee when advertising plan rates.

Verizon added monthly charges between January 1, 2016, to November 8, 2023. The amounts ranged from $1.95 per month to $3.30, depending on time period and plan. Although Verizon added these fees to itemized bills in their advertising, plaintiffs said that the company failed to disclose them clearly in its advertised plans, which made plans appear more affordable than they really were.

Katrina Higgins – the lead lawyer – explained what was at stake: “This case concerns honesty in pricing.” Customers must know the cost of their plans before clicking ‘I Agree’.

Here’s a real-life example: Verizon advertised “Unlimited” plans for $70 a month. Once the administrative charges are added, customers find that their bill is actually $73.30 per month. Over the course of a year, that’s an extra $39.60 compared to the advertised price. You can multiply this by millions of customers for nearly eight years and you’ll see why the settlement reached 100 million dollars.

Verizon has consistently denied any wrongdoing during the entire litigation. Verizon said in statements: “Verizon clearly describes and identifies its wireless consumer Admin charge at multiple points during the sale transaction, including its contracts and billing.”

Verizon decided to settle the case without admitting any liability, instead of continuing with court proceedings and mounting legal fees. In class action suits, companies often settle in order to avoid lengthy litigation costs which could exceed settlement amounts.

The lawsuit was filed with multiple federal district courts, and then consolidated. After a fairness hearing held on March 22, 20,24, the final approval came on 24 April 2024. Initial appeals, filed in 2024 May, were withdrawn 2024 September 2024. Payment distribution was then possible.

Lrean More, OAS Clawback 2026

Who is eligible for the Verizon administrative charges settlement?

Eligibility criteria were straightforward, but very specific. You were eligible if you met all of the following criteria:

You held a Verizon Wireless Account in the United States. It includes both primary account holders on family plans and authorized users.

You must have had a postpaid wireless or data service plan between November 8, 2016 and January 1, 2016. Prepaid customers were not eligible for the program because they did not pay these administrative fees.

During the period of class, you may have received bills with “Administrative charge”, “Administrative + Telco Recovery charges”, “Telco Recovery fees” or other similar items. These charges appeared on monthly statements as separate lines.

You have filed a valid application by April 15, 2024. Even if your eligibility is based on above criteria, if a claim was not filed by the deadline you won’t receive any money.

You did not withdraw from the settlement. The deadline to opt out of the settlement was February 20th, 2024. Anyone who chose to opt-out retained the right to sue Verizon personally and forfeited settlement involvement.

According to settlement documents based upon Verizon’s billing records, an estimated 68 – 69 million Verizon customers qualify as potential class members. Customers who have filed active claims will receive payment.

Even if you did not receive a settlement notice, it does not mean you were ineligible. Verizon mailed out and sent emails to customers who were eligible, but some people have changed email addresses, moved or just missed the communications. It was the responsibility of customers who were informed about the settlement by any means to submit a claim.

Sarah, my friend was a Verizon Customer from 2017-2021. These charges were paid. She never saw the settlement notice, because she has changed her email address two times since leaving Verizon. The deadline to file a claim was over by the time she learned about the settlement from a news report in May 2024. She was eligible but received nothing.

Who is eligible for the Verizon administrative charges settlement?

Eligibility criteria were straightforward, but very specific. You were eligible if you met all of the following criteria:

You held a Verizon Wireless Account in the United States. It includes both primary account holders on family plans and authorized users.

You must have had a postpaid wireless or data service plan between November 8, 2016 and January 1, 2016. Prepaid customers were not eligible for the program because they did not pay these administrative fees.

During the period of class, you may have received bills with “Administrative charge”, “Administrative + Telco Recovery charges”, “Telco Recovery fees” or other similar items. These charges appeared on monthly statements as separate lines.

You have filed a valid application by April 15, 2024. Even if your eligibility is based on above criteria, if a claim was not filed by the deadline you won’t receive any money.

You did not withdraw from the settlement. The deadline to opt out of the settlement was February 20th, 2024. Anyone who chose to opt-out retained the right to sue Verizon personally and forfeited settlement involvement.

According to settlement documents based upon Verizon’s billing records, an estimated 68 – 69 million Verizon customers qualify as potential class members. Customers who have filed active claims will receive payment.

Even if you did not receive a settlement notice, it does not mean you were ineligible. Verizon mailed out and sent emails to customers who were eligible, but some people have changed email addresses, moved or just missed the communications. It was the responsibility of customers who were informed about the settlement by any means to submit a claim.

Sarah, my friend, was a Verizon Customer from 2017-2021. These charges were paid. She never saw the settlement notice, because she has changed her email address two times since leaving Verizon. The deadline to file a claim was over by the time she learned about the settlement from a news report in May 2024. She was eligible but received nothing.

The Settlement Timeline – Key Dates that Matter

Understanding the timeline can help explain what is happening now and why some deadlines are not able to be extended.

• Dec 2023: Agreement reached between Verizon and plaintiffs. Site launched to announce terms and publicize settlement.
• The notice period is from January to February 2024. Verizon mailed and emailed notices to all eligible customers. Site for submitting claims opened.
• Date by which class members must opt out: February 20, 2020 After this date all eligible members of the class who did not opt-out are bound by settlement terms.
• The deadline to object to a settlement is February 26, 2024. Class members disagreeing with settlement terms can file formal complaints with the court.
• March 22, 2020: Final Fairness Hearing. The court heard objections, and decided whether or not the settlement was reasonable and adequate.
• April 15, 2024: Claim filing deadline. The deadline to submit online or via mail claims was April 15, 2020. No extensions have been granted.
• April 26, 2020: Final approval given. The court has officially approved the settlement and made it legally binding.
• May 2024: Objectors can file their initial appeals if they disagree with the terms or approval of the settlement.
• 2024 September: All appeals will be withdrawn. The settlement has become effective and payment distribution can begin.
• Originally, payment was scheduled to be made in December 2024. The distribution has been delayed until January 2020 due to the winter holidays.
• On January 6 and 7, 2025, payments began to be distributed to the approximately 5.2 Million class members that filed valid claims. The first payments were made electronically (Venmo, PayPal, Zelle, direct deposit).
• Jan-Mar 2025 : Distribution of remaining electronic payments, and mailing of paper checks to claimants without electronic payment information.

The deadline is set at April 15, 2024 and it cannot be changed. The courts set these deadlines in order to finalize settlements and enable distribution. You cannot file a late settlement claim if you miss the deadline.

Why your payment is less than $100

The question that everyone is asking. The settlement clearly stated payments were “up to” $100, so why do most people receive $5-$15 instead?

It was a simple formula: Each claimant who is eligible receives $15 in base payment and $1 for each month between January 2016 and November 2023 that they paid Verizon administrative charges.

If you’ve been a Verizon customer throughout the class period (94-months from January 2016 until November 2023), the calculated payment for your account would be $15 base + $94 monthly payments = $109. You would receive $100 if you are a Verizon customer during the entire class period. This is 94 months, from January 2016 to November 2023.

The fine print contains a critical clause: “In the case that the aggregate Settlement Funds for all Valid Claimant’s accounts exceed the Net Distribution Funds, each Valid Claimant’s account will receive a Settlement Payment reduced by a pro-rata amount.”

Translation: When too many people submit valid claims, each person’s payment is proportionally decreased to fit the available settlement funds after subtracting costs.

The $100 million gross settlement funds didn’t go all to claimants. This is how the money was divided:

Attorneys fees and costs approved by the court: 26.7% of gross fund was allocated to plaintiffs attorneys.

Settlement administration costs are approximately $5-7million for the claims administrator. This person processes claims, sends notices, maintains the website and handles inquiries.

Awarding incentives: Lead plaintiffs initiating the lawsuit received a service award totaling between $50,000 and $100,000 for their time spent representing the entire class.

After the deductions, approximately $66 to $68 million remains for actual payments.

The average payment calculated for approximately 5.2 millions valid claims is $12-13 per claimant, assuming the fund was distributed equally. Most people have reported receiving payments between $5 and $15.

People with a longer Verizon tenure were given a little more. Someone who had been a Verizon client for over 50 months during the class period could get $25-$40 while someone with only 12 months as a customer might receive $5 to $8.

David, my co-worker from the first story, was a Verizon client from March 2019, through July 2021 — approximately 29 months. His calculated amount would have been $14 + $29 = $54. After pro-rata deduction, he received approximately 15%, $6.42 of his calculated payment.

This dramatic decrease was due to the fact that far more claims were filed than the fund could handle at its full calculated value. In some class actions, claim rates range between 5-15%. Verizon’s settlement saw higher than average claim rates.

Check the Status of Your Verizon Settlement Payment

You can verify and track the status of your claim by following these steps if you filed it before the deadline on April 15, 2024.

Check your email confirmation. If you filed your claim online, the Verizon Administrative Charges Settlement administrator should have sent you an email confirmation immediately. This email also included a verification number. If you mailed in your application, you should receive a confirmation letter within two to three weeks.

Visit the official website. TopClassActions com, or ClassAction org- both established consumer protection sites – can provide you with the legit settlement website. These sites have verified links that lead to the official administrator pages of settlements.

Google “Verizon settlement”, but do not click on random results. Scammers set up fake settlement sites to steal personal data. Do not use links from websites that are established to protect consumers or court documents.

Contact the administrator of the settlement directly. You can contact the official settlement administrator via email or a dedicated phone number for any questions regarding claim status. On the verified settlement’s website, you can find contact details. Call with your claim number handy.

Monitor your chosen payment method. Monitor your electronic payments (Venmo PayPal Zelle Direct Deposit) if you chose them. If you see “Verizon Administration Settlement Administrator” as the sender name, or something similar, it means that payments have been made.

You should monitor your postal mail if you have chosen to send a check. Checks may arrive 4-6 weeks later than electronic payments if they are sent in early 2025.

Check your bank account for unexpected deposits. People often forget to file claims and get surprised by payment. Watch for deposits with Verizon-related names from December 2024 to March 2025.

I helped my nephew track down his settlement payment last week. He had filed a claim for compensation in March 2024. However, he moved in June of that year and did not update his address with Verizon. The settlement administrator mailed his check to the old address. He called the administrator and verified his claim by providing his confirmation code. They then reissued the cheque to his current address.

What if I never received confirmation? If you haven’t received a confirmation email or correspondence, then you’ve either: (1) not completed the claim submission process; (2) the claim has been deemed invalid due to some reason; or (3) opted out of settlement.

You can contact the settlement administrator for more information, but they will have limited access to your claim if you do not provide a confirmation number.

Verizon Settlement Scams and How to Avoid Them

When large settlements disperse payments, fraudsters take advantage of confusion. Here are red flags, and some protection strategies.

The following will NOT be included in any legitimate settlement communication:

• You can still ask for your Social Security after the deadline.
• Request banking information via email or phone call
• You must pay to receive your settlement money
• In an unsolicited message, ask you to click a link to verify the claim.
• If you do not respond quickly, your payment will be forfeited

Verizon settlement scams are common.

Phishing email: Fake emails from settlement administrators stating that your claim is in need of verification. These emails contain links that lead to fake websites intended to steal login credentials and personal information.

Phone scams: Callers who claim to be Verizon, or the settlement administrator, will tell you that your claim is in trouble and that they need information from you or a fee for your payment to be released.

Fake settlement websites are websites that have URLs similar to those of the real settlement website. These sites gather personal information about people who think that they are checking on the legitimacy of a claim.

Text message scams. SMS messages claim that you’ve received approval for a Verizon settlement. You need to click the link to receive it.

How to protect yourself:

You can only access the website of a settlement through links verified by TopClassActions.com ClassAction.org or official court documents. Bookmark the site that is legitimate and only use this bookmark.

Never provide sensitive information via email, text, or phone. You have already provided the settlement administrator with all information needed if your claim was valid.

Ignore unsolicited messages. If you are concerned about a communication that you have received, you should contact the settlement administrator by using the information found on the verified website of the settlement. Don’t contact them directly through the information contained in the suspicious communications.

Report scams by contacting the Federal Trade Commission (FTC) at ReportFraud.ftc.gov, and your state’s Consumer Protection Division.

In December 2024 my aunt received an SMS stating she was approved for a $97.50 Verizon payment settlement and needed to follow a link in order to claim it. The link led to a page asking for her Social Security Number and Bank Account number. She acted wisely and reported this to the FTC.

What If You Didn’t File a Claim? Your Options Now

But I regret to say that if you were someone who could have filed a claim (as in, paid for repeated credit-monitoring and submitted an Lcrp by April 15, 2024) but you didn’t file one before this year the following is true: You get absolutely nothing from this settlement. It is, however, a hard deadline and no extension will be granted.

Class action settlements are subject to rigid timelines approved by the court. After the submission of a claim deadline and final approval from court, the settlement is enforced to all class members. This ending cleared the way to distribute funds to those who did file claims.

Why deadlines can’t be extended:

Settlement funds are finite. If we had infinite deadlines, the fund would never be distributed as new claims would always come in.

Fairness to timely claimants. People who sued in time counted on the deadline to be enforced. Accepting late claims would dilute payments to those who had played by the rules.

Legal res judicata. Upon final approval and cross effective of the settlement, the case is no longer pending. Class members who chose not to opt out are bound by the settlement regardless of whether they filed claims.

Your only remaining options:

just realize that you will receive no payout from this unique settlement. The deadline for making a claim has come and gone, and there is no appeals process just because you missed the deadline.

Stay tuned for further telecommunications settlements. Verizon and its rivals have been hit with recurring lawsuits over their billing practices. Possible future settlements could “allow you to recoup money for other issues or time periods.

Complain to regulators. This won’t get you money from the current settlement, but filing complaints with the Federal Communications Commission (FCC) and your state Public Utilities Commission about hidden fees can help regulators build cases for future enforcement actions.

And, if there are other Verizon billing problems that you have been having beyond these administrative fees alone, you should talk to a consumer protection lawyer about whether you may have an individual claim for legal action.

Read over your current and future wireless bills closely. Some carriers keep charging administration fees and other surcharges. Knowing the precise amount you are paying can help make decisions later on about whether to switch carriers or plans.

The reality is that class action settlements incentivize vigilance. Those who take notice of notices, read the fine print and file claims on time are compensated. And tardy filers — even those who had good reasons such as failing to see notices — get nothing.

The Bigger Picture: What This Settlement Means for Telecom Billing

The Verizon administrative fees settlement is indicative of the growing trend towards transparency in billing within the telecommunications industry.

Recent related settlements and cases:

T-Mobile Sprint Merger Settlement (2024): $350 million to settle claims that T-Mobile raised rates after acquiring Sprint despite pledges it would not.

AT&T Administrative Fee Class Action (We are collecting information): This case has the same or similar complaints as Verizon’s about hiding an admin fee in a postpaid plan.

Sprint Data Throttling Settlement (2023): $35 million in settlement over deceptive “unlimited” claims for data throttled without sufficient disclosure.

Verizon Unlimited Data Throttling (2021): Previous settlement between the same parties concerning speed reductions that were not properly disclosed to “unlimited” plan customers.

AT&T Cramming Settlement (2019): $105 million to the FTC and FCC for unauthorized third-party charges added to consumer bills.

Regulatory pressure is increasing.

In February 2024, the FCC also proposed new rules that would force wireless carriers to include all mandatory fees in advertised prices (“all-in” pricing). This change targets the practices that were challenged in the Verizon case.

Beyond lending, the Biden administration’s larger “junk fee-off” initiative aimed to cut unstated fees in various sectors — telecommunications, hotels, achingly cramped airline travel; banking and beyond. The FCC and the Federal Trade Commission (FTC) yesterday unveiled plans to work together in their fight against deceptive fees.

What changed at Verizon?

Under the settlement, Verizon also agreed to “clearer billing disclosures going forward.” Although specific changes were not discussed in the settlement documents, the company presumably beefed up how it talks about administrative fees in advertising and sales practices.

But Verizon still imposes administrative fees. The settlement didn’t remove the fees or declare them unlawful — it simply resolved how they were disclosed. Current customers of Verizon still pay these fees; they are just (in theory) more aware of them now.

Consumer impact going forward:

More transparent pricing. Consumers would see full monthly costs, including all mandatory fees, when shopping for plans and carriers if FCC rules requiring all-in pricing are put into place.

Better shopping tools. More transparent pricing should make it simpler to comparison shop among carriers and understand actual costs before signing up for a new plan.

Ongoing vigilance required. Despite better disclosure, consumers still have to read the fine print, check an itemized bill and know what exactly they are paying compared with what was advertised.

The settlement also sets precedent. Future cases brought about protesting against telecom billing practices can use this case and its judgment as a precedent for consumer protection and transparency.

What to Do Now: Your Action Steps

Whether you were paid, missed the deadline or are still waiting for a payment to arrive, here is what you need to do next.

If you received a payment:

Make sure it’s real by ensuring the sender name is ”Verizon Administrative Settlement Administrator” or something similarly official. If you’re unsure, reach out to the settlement administrator directly via the information provided on the validated site.

Make copies of the payment for your personal records. Settlement payments are not considered taxable income, though it is never a bad idea to keep records.

Don’t expect more payments. This settlement reimbursed a uniform amount for each eligible account. Additional payments are not going to come from this particular case.

If you’re still waiting for a payment you believe you should have received:

Check for confirmation emails or letters to verify you filed a claim. If you didn’t receive a confirmation, chances are the claim attempt was not successful.

Reach the settlement administrator via the approved website if you have a confirmation number and payment has not arrived by March 2025.

Update your address with the administrator if you have moved since filing your claim. This is especially critical if you opted to pay by check.

Understand that paper checks may take much longer to arrive than electronic payments.

If you missed the claim deadline:

Recognize you’re not going to get paid off of the deal. The deadline cannot be extended.

Learn from the experience. Subscribe to class action alert services from TopClassActions. com, ClassAction. org, and other sites to be alerted of future settlements you may qualify for.

Review your recent customers wireless bills for any questionable fees and consider complaining to the FCC if you feel you are being unfairly charged.

For current Verizon customers:

Note that Verizon still imposes administrative fees. The agreement didn’t wipe out those fees — it dealt only with disclosure practices.

Review your monthly bills to understand clearly what you’re paying beyond the cost of the advertised plan.

Take a hard look at the total cost (with all fees) and ask yourself if Verizon’s competitive when stacked up against carriers with more honest pricing.

For everyone:

And keep an eye on telecommunications billing. Carriers keep coming up with new surcharges and fees to inflate the price of a ticket above the advertised fare.

Support laws that regulate depth of transparency. The FCC’s proposed all-in pricing rules would allow consumers to comparison shop more effectively.

Carefully read the wireless service agreement before signing it. Knowing what you will pay exactly for what and any additional fees that can be tacked on, helps keep you from being surprised with your first bill.

The Verizon regulatory charge case sewed in two ways both the strength and weaknesses of class actions. For 5.2 million people with timely claims, the settlement doles out puny payment amounts ranging from $10 to $15 on average. For the approximately 60+ million eligible consumers who did not file claims, it’s their expensive reminder to pay attention to legal notices and deadlines.

How the ruling affects business practices more broadly will have to wait and be decided on a case-by-case basis. If the FCC takes the final step and adopts all-in pricing rules, and if a growing number of consumers require transparency in their Internet service purchases, carriers could end up changing how they charge customers. In the meantime, consumers should continue to be skeptical of what costs are the real cost versus what is the advertised price for wireless service.