Over a year ago, Verizon agreed to a class-action settlement to compensate current and former customers who used the carrier between January 1, 2016, and November 8, 2023, with promised payments of up to $100 each.
According to the settlement terms, maximizing the payout to $100 required being a Verizon customer for a staggering 85 months (just over seven years). This week, the payout process began, with eligible customers receiving their funds through platforms like Venmo, PayPal, or via a virtual prepaid Mastercard.
A Verizon customer receives a settlement payment via Venmo. | Image credit-X
However, many customers were left disappointed as the actual amounts received fell far below expectations. Reports surfaced of payments as low as $2.51, with others receiving deposits of $4.89 and $14.81. One Verizon user showcased his disappointment on social media after receiving just $2.51 through Venmo.
Some recipients received their settlement as a virtual prepaid Mastercard. Notice the amount! | Image credit-X
Several factors influenced the final payouts, such as the total number of claims filed and the legal fees incurred. While longevity as a Verizon customer was designed to correlate with higher payouts, an overwhelming number of claims appeared to dilute the amounts distributed—each claim was reduced proportionally based on the total claims submitted.
"If the total Settlement Payments exceed the Net Distributable Funds, the Settlement Payment issued to each Valid Claimant will be reduced on a pro rata basis, as determined by the Settlement Administrator," states the Verizon settlement website.
The lawyers representing the case also took a substantial share of the settlement, claiming a robust $33 million from the total $100 million allocated to the settlement—demonstrating that a 33% fee for class-action suits is not uncommon.
The settlement not only required Verizon to compensate its users but also mandated revisions to customer agreements, specifically regarding Administrative Charge disclosures. This move ensures that subscribers are properly informed about these fees, which were previously undisclosed in advertisements from Verizon.
