Some Verizon (NYSE:VZ) customers may have a welcome surprise waiting in their mailboxes this week in the form of a partial refund as part of the $100 million Verizon Class-Action lawsuit settlement. Indeed, the wireless network operator has recently begun notifying customers via postcard or email that they have until April 15 to file a claim entitling them to up to $100.
What do you need to know about the latest class-action news making rounds on Wall Street?
Well, the lawsuit accuses Verizon of levying fees in a manner deemed “unfair and not adequately disclosed” between Jan. 1, 2016 and Nov. 8, 2023. Specifically, plaintiffs acknowledged that Verizon’s “administrative charge and/or an administrative and telco recovery charge” was “misleading” as it wasn’t properly advertised in the plan’s monthly price. According to the plaintiff, the charge was made in a “deceptive and unfair manner.”
Verizon has gone on the defensive, adamantly denying the claims. The company stated that it “clearly identifies and describes its wireless consumer admin charge multiple times during the sales transaction, as well as in its marketing, contracts and billing.”
Regardless, the settlement was approved in court last month, though it still awaits an upcoming “fairness hearing” set for March.
Interestingly, the case has garnered Federal scrutiny. In October, the Federal Trade Commission (FTC) proposed a rule that would restrict the business practice of hidden or otherwise misleading charges, instead requiring more transparent, upfront prices.
How Do I Apply for the Verizon Class-Action Lawsuit Settlement?
A special website has been launched by the court of New Jersey, allowing potential victims to submit their claims. The form simply asks for the Notice ID and Confirmation Code received in the settlement notices. Once submitted, should the settlement pass the fairness trial, recipients should expect a payout of $15 to $100, depending on the length of services. Payment can be requested via check, Venmo or direct bank wire.
Failing to file a claim “will give up any right you may have to sue Verizon about the issues in this lawsuit,” according to the website.
Verizon stock may be paying the piper for its legal misgivings. Indeed, VZ stock is down 3.3% since January 2023, even as the Nasdaq Composite and S&P 500 are up 38% and 21%, respectively, over the same period.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
