Verizon Class Action Lawsuit, Customers Getting $15-$100 Checks Right Now—$100M Settlement Payments Hit Accounts in January 2025
Verizon Wireless agreed to pay $100 million to settle allegations it charged undisclosed administrative fees between January 1, 2016, and November 8, 2023. Eligible customers who filed claims by the April 15, 2024 deadline are receiving payments of $15 to $100 via electronic transfer or check starting January 2025.
Lead plaintiffs in Esposito et al. v. Cellco Partnership d/b/a Verizon Wireless claimed the telecom giant misled postpaid customers by advertising plan prices without including mandatory Administrative Charges and Telco Recovery Charges. Final approval was granted April 26, 2024, and all appeals were withdrawn September 20, 2024.
Case Status: Settlement approved and payments actively distributing. Electronic payments began early January 2025, with paper checks continuing through late 2025.
What Is the Verizon Class Action Lawsuit About?
The Verizon class action lawsuit centers on allegations that Cellco Partnership d/b/a Verizon Wireless engaged in deceptive advertising by promoting wireless service plans at specific prices while failing to disclose mandatory monthly administrative fees that increased actual costs.
According to the complaint filed in New Jersey Superior Court, Verizon charged customers recurring “Administrative Charges” and “Administrative and Telco Recovery Charges” ranging from $1.35 to $3.30 per line monthly without adequately disclosing these fees in advertised plan prices. Plaintiffs alleged the fees constituted hidden price increases that violated consumer protection and fair advertising laws.
The lawsuit consolidated four separate class actions into a single proceeding known as Esposito et al. v. Cellco Partnership d/b/a Verizon Wireless, Docket No. MID-L-6360-22. The case argued Verizon’s marketing materials, advertisements, and sales presentations emphasized monthly plan rates without prominently displaying the administrative charges customers would inevitably pay.
Per court documents, these “junk fees” affected millions of postpaid wireless accounts nationwide, generating substantial revenue for Verizon while misleading consumers about true service costs. The cumulative impact—small monthly charges multiplied across millions of customers over nearly eight years—resulted in the $100 million settlement fund.
The Parties Involved in the Lawsuit
Lead Plaintiffs:
- Named Plaintiffs: Esposito and other postpaid Verizon customers who paid administrative charges between 2016-2023
- Class Representatives: Received service awards up to $3,500 each for their commitment to representing the Settlement Class
Defendant:
- Cellco Partnership d/b/a Verizon Wireless: The telecommunications giant headquartered in Basking Ridge, New Jersey, operating nationwide postpaid wireless services
Settlement Class: Approximately 68-69 million current and former Verizon account holders who received postpaid wireless or data services and paid Administrative Charges or Administrative and Telco Recovery Charges between January 1, 2016, and November 8, 2023.
Settlement Class Counsel:
- DeNittis Osefchen Prince, P.C. (Stephen P. DeNittis, Esq., Joseph A. Osefchen, Esq., Shane T. Prince, Esq.)
- Lite DePalma Greenberg, LLC (Daniel M. Hattis, Esq., Paul Karl Lukacs, Esq.)
Settlement Administrator: Angeion Group, LLC (also operating settlement website VerizonAdministrativeChargeSettlement.com)
Presiding Court: Superior Court of the State of New Jersey, Middlesex County
Key Legal Claims Explained
The Verizon class action lawsuit alleged violations of multiple consumer protection statutes and common law principles:
Primary Legal Claims:
- Deceptive Advertising: Verizon advertised plan prices without disclosing mandatory administrative fees, violating truth-in-advertising requirements
- Unfair Business Practices: Administrative charges constituted hidden rate increases not disclosed during plan selection
- Consumer Fraud: Representing plan prices as complete when additional mandatory fees would be charged
- Breach of Contract: Charging fees not adequately disclosed in customer agreements
- Unjust Enrichment: Verizon profited from fee revenue customers didn’t anticipate paying
The Disclosure Argument:
Plaintiffs’ Position: Verizon’s advertisements, promotional materials, and online plan comparisons emphasized monthly rates (e.g., “$70/month unlimited plan”) without prominently displaying that administrative charges would be added to every bill. Customers believed advertised prices represented total monthly costs.
According to the complaint, even when Verizon mentioned administrative charges in fine print or terms of service, the disclosure was insufficient because consumers couldn’t see the exact fee amount until receiving their first bill—after already committing to service contracts.
Verizon’s Defense:
Verizon denied all allegations and maintained 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.” A company spokesperson stated the charge “helps our company recover certain regulatory compliance and network related costs.”
Verizon agreed to settle “to avoid the cost and uncertainty of further litigation” without admitting wrongdoing or liability.
Timeline of Events Leading to the Settlement
January 1, 2016: Class period begins—eligible customers start paying disputed administrative charges
2016-2023: Verizon charges Administrative Charges and Telco Recovery Charges to millions of postpaid accounts
2022: Multiple lawsuits filed in various jurisdictions alleging deceptive fee practices
2022: Cases consolidated in New Jersey Superior Court, Middlesex County as Esposito et al. v. Cellco Partnership
November 8, 2023: Class period ends—last date covered by settlement
Late 2023: Extensive settlement negotiations between parties
January 31, 2024: Settlement Class Counsel petition for attorneys’ fees and class representative service awards
February 20, 2024: Deadline to opt out of settlement
February 26, 2024: Deadline to file objections to settlement
March 22, 2024: Final fairness hearing held
April 15, 2024: CLAIM DEADLINE—Last day to submit claims (deadline passed)
April 26, 2024: Court grants final approval of $100 million settlement
May 4, 2024: Appeal filed challenging settlement approval
September 20, 2024: Last remaining appeal withdrawn—settlement becomes effective
January 2025: Settlement payments begin distribution to approved claimants
Late 2025: Paper checks continue mailing to claimants without electronic payment accounts
Who Qualifies as a Class Member?
You qualified for the Verizon administrative fees settlement if you met ALL criteria:
✅ You had a Verizon postpaid wireless or data plan
✅ You were charged an “Administrative Charge” and/or “Administrative and Telco Recovery Charge”
✅ You paid these charges between January 1, 2016, and November 8, 2023
✅ You filed a valid claim by April 15, 2024
✅ You did NOT opt out of the settlement
Excluded from the Settlement Class:
- Customers who timely opted out
- Governmental entities
- Counsel of record for the parties
- Verizon and its affiliates, officers, directors, and employees
- Presiding judges and judicial staff
- Anyone who previously released Verizon from these claims
According to settlement documents, an estimated 68-69 million Verizon customers qualified as potential class members based on Verizon’s billing records. However, only customers who actively filed claims by the April 15, 2024 deadline will receive payments.
How Settlement Payments Are Calculated
The $100 million settlement fund is being distributed according to this formula:
Base Payment: $15 minimum per approved claim
Monthly Service Bonus: $1 additional for each month you paid the administrative charges during the class period
Maximum Payment: $100 per claimant
Example Calculations:
- Paid administrative charges for 10 months: $15 + ($1 x 10) = $25
- Paid administrative charges for 50 months: $15 + ($1 x 50) = $65
- Paid administrative charges for 85+ months: $15 + ($1 x 85) = $100 (maximum)
Pro-Rata Adjustments: If the settlement fund is insufficient to pay all claims at full value (after deducting court-approved amounts for administration, attorneys’ fees, and service awards), payments will be proportionally reduced.
Social media reports indicate most recipients are receiving $4 to $50 rather than amounts near $100, suggesting either pro-rata reductions were applied or many claimants had shorter service periods than maximum duration.
Recent Court Developments and Current Status
Final Approval Granted: The New Jersey Superior Court granted final approval April 26, 2024, concluding the settlement is “fair, reasonable, and adequate” to Settlement Class Members.
Appeals Resolved: While objectors initially filed appeals in May 2024, the last remaining appeal was withdrawn September 20, 2024, clearing the path for payment distribution.
Payment Distribution Underway: According to the official settlement website and administrator updates, payments began distributing in early January 2025.
Payment Methods:
- Electronic Transfer (Zelle, PayPal, Venmo, direct deposit): Fastest delivery, began January 2025
- Paper Checks: Mailing throughout 2025, slower delivery (4-8 weeks after mailing)
Status Verification: Claimants who filed valid claims can check payment status by:
- Visiting VerizonAdministrativeChargeSettlement.com
- Calling settlement administrator: 1-844-689-0186
- Emailing: [email protected]
What Claimants Are Reporting: Recipients began posting on social media in January 2025 about receiving Venmo, PayPal, and Zelle transfers from “Verizon Administrative Settlement Administrator.” Many expressed disappointment that payments ranged from $4-$50 rather than approaching the advertised $100 maximum.
Legal Precedents and Similar Telecommunications Cases
The Verizon administrative fees settlement joins numerous telecom class actions challenging “junk fees” and billing transparency:
Recent Similar Cases:
- T-Mobile Sprint Merger Settlement (2024): $350 million settlement over alleged price increases following Sprint acquisition
- AT&T Administrative Fee Class Action (Ongoing 2024): Allegations similar to Verizon case regarding undisclosed administrative charges
- Sprint Data Throttling Settlement (2023): $35 million settlement over misleading “unlimited” data claims
- Verizon Unlimited Data Throttling (2021): Settlement over speed reductions not adequately disclosed
- AT&T Cramming Settlement (2019): $105 million to FTC/FCC for unauthorized third-party charges
Regulatory Context:
The Biden administration targeted “junk fees” across industries in 2023-2024, with the Federal Communications Commission (FCC) and Federal Trade Commission (FTC) announcing new rulemaking efforts to combat misleading telecom surcharges.
In February 2024, the FCC proposed requiring wireless carriers to display “all-in” pricing that includes mandatory fees in advertised rates—a rule change directly addressing practices challenged in the Verizon lawsuit.
Legal Significance:
The Verizon settlement demonstrates that even small recurring fees ($1.35-$3.30 monthly) can generate massive liability when charged to millions of customers. While individual payouts are modest ($15-$100), the $100 million total represents approximately 33.3% of estimated class-wide damages—a typical recovery rate for consumer class actions.
Expert Analysis and Industry Implications
Consumer protection attorneys view the Verizon settlement as a significant win for billing transparency, even though individual payments are relatively small.
“This case is about honesty in pricing,” said lead counsel Katrina Higgins. “Small fees add up to big problems. What matters now is that consumers read their bills and companies play fair.”
Former FTC advisor Dr. Evan Miles noted: “What might look like a harmless $1–$3 charge per month can, for millions of customers, add up to large aggregate sums. This settlement demonstrates that large companies can be held accountable for opaque billing practices.”
Industry Impact:
As part of the settlement, Verizon agreed to amend its Customer Agreement to include revised Administrative Charge disclosures with clearer language about fee purposes and amounts. This commitment to transparency may influence industry-wide billing practices.
Financial analyst Rachel Kim of Tech Policy Insights explained: “Even a few bucks per month becomes a nine-figure liability when millions are affected. Telecom companies are now reviewing their billing disclosures to avoid similar lawsuits.”
Consumer Takeaways:
- Always read complete billing statements, not just advertised plan prices
- Question recurring fees that weren’t clearly disclosed during signup
- Keep records of promotional materials and sales promises
- Report suspected deceptive billing to state attorneys general or the FCC
- Participate in class action settlements when eligible—even small amounts can prompt corporate accountability
Consumer-rights attorney Paul Kent advised: “Even if your individual payment is only $15-$25, filing claims matters. It proves that holding corporations accountable—even for a few dollars a month—can drive systemic change in industry practices.”
Settlement Fund Allocation
The $100 million Verizon settlement fund is allocated as follows:
Total Settlement Fund: $100,000,000
Distributions:
- Class Member Payments: Maximum available after deductions (estimated $60-65 million based on typical allocations)
- Attorneys’ Fees: Up to $33.3 million (33.30% of settlement fund, subject to court approval)
- Litigation Expenses: Reimbursement of costs incurred by Settlement Class Counsel
- Class Representative Service Awards: Up to $3,500 each for named plaintiffs
- Settlement Administration Costs: Fees for Angeion Group to handle notices, claims processing, and payments
Settlement Class Counsel petitioned for these amounts January 31, 2024, arguing the fees represent fair compensation for achieving significant relief on a contingency basis (no payment unless successful).
The court approved these allocations as reasonable given the complexity of litigating against a major telecommunications company and the substantial benefit secured for class members.
What Happens If You Missed the Deadline?
If you did NOT file a claim by April 15, 2024:
❌ You CANNOT receive a settlement payment—no exceptions for late claims
❌ You are STILL bound by the settlement’s release of claims—you gave up your right to sue Verizon separately for these administrative charges
✅ You may benefit from improved disclosures—Verizon’s agreement to provide clearer billing information applies to all customers
Why the deadline matters: Class action settlements require strict deadlines to achieve finality. Courts do not reopen claim periods once final approval is granted, even for class members who weren’t aware of the lawsuit.
Future Opportunities: Verizon faces ongoing and potential future litigation over different issues (data breaches, accessibility, biometric privacy). Monitor class action settlement websites for new cases where you might qualify.
Other Active Verizon Lawsuits
Verizon currently faces several additional class action lawsuits unrelated to the administrative fees settlement:
Verizon Data Breach Lawsuit (February 2024): Class action filed after Verizon disclosed a September 2023 breach affecting 63,206 employees. An unauthorized Verizon employee accessed sensitive personal information including Social Security numbers, birthdates, and addresses. The lawsuit alleges Verizon failed to protect employee data and delayed notifying victims for nearly five months.
Verizon Voice ID Biometric Privacy Lawsuit (September 2024): Plaintiffs Thelton George Parker Jr. and Steven Doyle filed suit in Illinois federal court alleging Verizon’s Voice ID feature collects and stores customer voiceprints without obtaining informed written consent as required by the Illinois Biometric Information Privacy Act (BIPA).
Verizon Website Accessibility Lawsuit (2024): Class action alleges Verizon’s website is not fully accessible to blind and visually-impaired individuals, violating the Americans with Disabilities Act (ADA).
These cases remain in active litigation with no settlements announced as of November 2024.
FAQ: Common Questions About the Verizon Class Action Lawsuit
What is the Verizon class action lawsuit about?
The lawsuit alleged Verizon Wireless charged undisclosed “Administrative Charges” and “Telco Recovery Charges” on postpaid wireless bills between January 2016 and November 2023. Plaintiffs claimed Verizon’s advertised plan prices didn’t include these mandatory fees, misleading customers about actual monthly costs. Verizon agreed to pay $100 million to settle the case without admitting wrongdoing.
Who are the parties involved in the lawsuit?
Lead plaintiffs include Esposito and other Verizon postpaid customers. The defendant is Cellco Partnership d/b/a Verizon Wireless. The case is Esposito et al. v. Cellco Partnership, Docket No. MID-L-6360-22, in New Jersey Superior Court, Middlesex County. Settlement Class Counsel include DeNittis Osefchen Prince, P.C. and Lite DePalma Greenberg, LLC.
Can I still file a claim for the Verizon settlement?
No. The claim deadline was April 15, 2024, at 11:59 PM PT. No late claims are being accepted. If you missed the deadline, you cannot receive a settlement payment.
How much will I receive from the Verizon settlement?
Approved claimants receive a base payment of $15 plus $1 for each month they paid administrative charges during the class period (January 2016 – November 2023), up to a maximum of $100. Most recipients are reporting payments between $15-$50.
When will I receive my Verizon settlement payment?
Payments began distributing in January 2025. Electronic transfers (Zelle, PayPal, Venmo, direct deposit) are being sent first. Paper checks are mailing throughout 2025 and may take 4-8 weeks to arrive. Check your payment status at VerizonAdministrativeChargeSettlement.com or call 1-844-689-0186.
Why is my payment less than $100?
The $100 amount was a maximum, not a guarantee. Your actual payment depends on how many months you paid administrative charges. Additionally, if the settlement fund was insufficient to pay all claims at full value after deducting fees and costs, payments may have been proportionally reduced.
I received a deposit from “Verizon Administrative Settlement Administrator”—is this legitimate?
Yes. Legitimate settlement payments are being distributed via electronic transfer from “Verizon Administrative Settlement Administrator” or via checks bearing that name. However, be cautious of scams—the settlement administrator will never ask you to pay fees, provide credit card information, or click suspicious links to claim your payment.
Does this settlement affect other Verizon lawsuits I might be part of?
No. This settlement only covers administrative fees charged between January 2016 and November 2023. Separate Verizon lawsuits (data breach, biometric privacy, accessibility) involve different allegations and are not affected by this settlement.
Legal Disclaimer: This article provides factual information about the Verizon class action lawsuit (Esposito et al. v. Cellco Partnership d/b/a Verizon Wireless) based on verified court documents, news sources, and legal filings. It is for educational purposes only and does not constitute legal advice. Case details and status are subject to change as litigation progresses. For specific legal advice regarding similar matters, please consult with a qualified attorney. Always verify current case information through official court records, VerizonAdministrativeChargeSettlement.com, and reputable legal news sources.
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Official Resources:
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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