Verizon Accused of Failing to Refund $187M in False Fees

OnVerizon Wireless Tuesday, a Washington state lawyer filed a documents with federal regulators alleging that the nation’s largest wireless carrier misrepresented the amount of money it collected from customers over false charges relating to data transmission on its network.

In 2010, Verizon Wireless  jointly owned by Verizon (VZ) and Vodafone (VOD) — agreed to refund $52.8 million in charges after customers complained about a $1.99 charge for data use even though they had not used the data service, or in some cases, didn’t have phones capable to connecting to the data network. Verizon Wireless also agreed to pay the government $25 million in addition to the refunds to settle a Federal Communications Commission (FCC) investigation of the charges, the New York Times noted.

Verizon Accused of Slowing Netflix Streaming
Verizon Accused of Slowing Netflix Streaming

In a new petition to the FCC, Arthur V. Belendiuk says that a review of regulatory documents shows that Verizon Wireless actually received about $240 million from the false charges, more than four times the amount it agreed to refund to customers.

Verizon Wireless dismissed the claim. The FCC declined to comment to the Times on the petition.

Earlier this year, rumors circulated that Verizon planned to acquire Vodafone’s stake in Verizon Wireless.

Shares of Verizon rose fractionally in Wednesday morning trading.

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