The Verizon class action settlement was a $100 million agreement resolving claims that Verizon charged undisclosed administrative fees to postpaid wireless and data customers between January 1, 2016, and November 8, 2023. The claim filing deadline was April 15, 2024, and new claims can no longer be submitted. Individual payments, capped at $100, began reaching claimants who filed on time in early 2025.
What the Lawsuit Was About
The case was filed in the Superior Court of New Jersey. It alleged that Verizon added, raised, and collected “Administrative Charges” and “Administrative and Telco Recovery Charges” on postpaid wireless and data plans without adequately disclosing them, in what the complaint described as a deceptive and unfair manner.
You were eligible if you had a Verizon postpaid wireless or data service plan at any point between January 1, 2016, and November 8, 2023, and were charged one or both of those fees. The settlement did not cover prepaid plans, and it did not extend to Verizon’s internet or TV services. Eligible customers were sent email notices with a unique notice ID and confirmation code used to file the claim.
How Much Claimants Received
Payouts followed a simple formula. Each valid claimant received a base amount of $15, plus $1 for every month their account was charged an Administrative Charge or Telco Recovery Charge during the class period. The maximum was $100 per claimant. Final amounts varied with how long you were charged during the eligible window and how many claims were filed overall.
After the court granted final approval and the appeal period ran, payments started going out in early 2025. Claimants who selected Zelle or direct deposit received their funds within days of processing. Paper checks took several additional weeks by mail. If you filed a valid claim and still have not been paid, check VerizonAdministrativeChargeSettlement.com for status updates or reach the settlement administrator through the contact information on that site.
If You Missed the April 15, 2024 Deadline
If you did not file by April 15, 2024, you almost certainly cannot collect a payment. Class action deadlines are strictly enforced, and courts rarely make exceptions once distribution has begun. Contacting the settlement administrator to ask costs nothing, but expect the same answer.
The part that catches people off guard: you are still bound by the settlement even if you did not file. Unless you formally opted out during the opt-out window, you are treated as a class member who had compensation made available. That means you gave up your right to sue Verizon individually over the same administrative fee practices, whether or not you actually collected anything. Unclaimed funds in settlements like this are typically redistributed to claimants who filed, turned over to the state as unclaimed property, or, under a doctrine called cy-pres, donated to a related charitable purpose.
Is the Payment Taxable
Whether a settlement payment is taxable depends on what the money is meant to replace. The IRS looks at the underlying nature of the claim, and the guiding rule is that all income is taxable unless the tax code specifically excludes it.1Internal Revenue Service. Tax Implications of Settlements and Judgments
Here, the payment essentially reimburses customers for fees they should not have been charged, and a refund of an overcharge is generally not treated as new income because you are getting your own money back. One exception matters: if you previously deducted those charges as a business expense, the refund can be taxable to the extent you benefited from the deduction. For most individual consumers who just paid their phone bill, the small dollar amounts here are unlikely to create a meaningful tax obligation. Settlement administrators typically issue a Form 1099-MISC only when a taxable payment exceeds $600, and the Verizon payout was capped at $100.
Watch Out for Settlement Scams
High-profile settlements attract scammers. Be skeptical of unsolicited emails, texts, or calls claiming you can still file a Verizon settlement claim or that you must pay a fee to release your payment. A legitimate settlement administrator will not ask for your Social Security number, bank login credentials, or an upfront processing fee.
Verify any communication independently. Go directly to the official settlement website rather than clicking links in emails. Real notices include specific details like a notice ID, the case name, and the court where it was filed. Vague messages that push immediate action or threaten loss of payment are almost always fraudulent. If a message feels off, contact the settlement administrator using the phone number or email listed on the official site, not the contact information in the suspicious message.