US telecom giant Verizon has reached a settlement for a total of $100 million to resolve a class action lawsuit filed by customers in 2025. The lawsuit was brought by Verizon postpaid customers who discovered hidden administrative fees in their bills. In this article, we’ll explore why this settlement happened, who qualifies, how much you can get, how to apply, when and how payments will be made, and what steps come next.
What is a class action lawsuit?
Class action lawsuits allow large groups of people with the same complaint to combine their cases into one suit. Benefits include:
- Faster litigation process
- Reduced legal costs per individual
- Higher chance of fair compensation for all eligible members
Example
Imagine 50,000 Verizon postpaid customers in Georgia each being charged one or two dollars per month in hidden “Administrative Charge” fees. Because those fees weren’t disclosed in the advertised plan price, the customers united to file a single class action suit against Verizon.
Why was Verizon sued?
Customers alleged that Verizon’s advertised plan rates omitted “Administrative Charges” and “Telco Recovery Fees,” which only appeared later on their bills. Verizon maintained that these fees covered network and regulatory costs. Customers, however, said they received no clear information or explanation when buying the plan. Unresolved complaints led them to pursue legal action.
$100 million settlement – key points
Verizon created a $100 million settlement fund without admitting fault, aiming for a swift resolution:
- Period: April 1, 2016 – November 8, 2023
- Eligibility: Verizon postpaid customers charged administrative or telco recovery fees
- Claim deadline: April 15, 2025
- Settlement amount: $100 million total
- Distribution:
- Minimum base payment of $15
- Additional $1 per month in fees paid, up to $100 total
- Payment methods: Direct deposit, paper check, Zelle, PayPal, Venmo, etc.
- Claim form required: None
- Right to opt out or object: By April 15, 2025

Detailed eligibility information
To qualify for the settlement, you must meet all of the following:
- Verizon postpaid account or data plan
You held a Verizon postpaid account during the period when you were charged administrative fees. - Administrative Fee Payment
You paid administrative charges or telco recovery fees between April 1, 2016, and November 8, 2023. - Claim filing deadline
You filed your claim on or before April 15, 2025, or confirmed you opted out of the class. - Documentation
You have bills showing the extra charges, which you can upload via the web portal or send by mail/email. - Opting out
If you wish to exclude yourself, submit a written request by April 15, 2025; otherwise, you’ll receive payment automatically.
Eligibility example
Mr. Dube of New York paid $2 per month in hidden “Administrative Charges” on his Verizon bill from 2018 to 2022. If he filed his claim by April 15, 202,5, and didn’t opt out, he would get the $15 base payment plus $1 for each of the 30 months: $15 + (30 × $1) = $45.
How to file a claim
Although no form is required to remain in the class, here’s how to file or opt out:
Online process
- Visit verizonadministrativechargesettlement
- Select “File a Claim.”
- Enter your name, address, Verizon account details, and billing info
- Upload a scan or photo of your bill showing the extra charge
- Submit and save your unique claim ID
Email or fax
- Download the printable claim form from the official website
- Fill in all required details and attach your supporting documents
- Send via the provided email or fax number
Update your contact info
If you’ve moved or changed your phone/email, notify the Settlement Administrator so your payment isn’t misdirected.
How much will you receive, and why it may be less
The $100 million fund is divided among all eligible members. Average payouts range from $15 to $39, but amounts vary:
- Base payment: $15 per accepted claim
- Monthly bonus: $1 for each month you paid the fee
- Cap: $100 per claim
Why payouts are often small
- High participation: Over 500,000 people filed claims
- Legal and administrative costs: Approximately $33 million spent on fees
- Pro rata distribution: Remaining funds split based on individual charges
When and how payments are sent
Payments began January 6, 2025, after court approval. Methods include:
- Virtual prepaid cards sent via email
- Paper checks mailed to your address
- Digital transfers to Zelle, Venmo, or PayPal
- Direct deposit to your bank account
Verify your chosen method on the settlement portal to ensure correct delivery.
Frequently Asked Questions (FAQs)
Q1: Are Verizon settlement payouts taxable?
Small amounts (under $600) aren’t reported to the IRS, but consult a tax professional for personalized advice.
Q2: Will Verizon charge extra fees again?
Verizon may still charge network-related fees, but must now fully disclose them and provide clear explanations.
Q3: Can I challenge the payout I received?
No, once the settlement is court-approved, the payout formula cannot be altered.
Q4: I missed the claim deadline—am I out of luck?
Yes. Claims are not accepted after April 15, 2025.
Conclusion
Verizon’s $100 million class action settlement delivers justice to thousands of postpaid customers who faced undisclosed administrative fees. Eligible members who filed by April 15, 2025, or who remained in the class, will automatically receive $15 to $100 each, based on their payment history. Payments started in January 2025; check your bank, PayPal, or mail for your payout. Stay informed, keep your details updated, and secure the compensation you deserve.