You probably saw the emails. Maybe you ignored them. Most people do when they see a subject line that looks like a phishing scam or some dry legal jargon about a class action. But if you were a Verizon post-paid wireless customer in the U.S. between January 1, 2016, and November 8, 2023, that Verizon administrative charge settlement was very real. It wasn't just another corporate glitch. It was a $100 million acknowledgement that the way big telecom handles "fees" can be incredibly murky.
It’s honestly kind of a classic story in the American consumer landscape. A massive company adds a tiny charge to your bill. It’s a few bucks. You barely notice. Or, if you do notice, you figure it's just part of the cost of doing business in a world where "unlimited" rarely actually means unlimited. But multiply those few dollars by millions of customers over seven years, and you’re looking at a mountain of cash.
The lawsuit, Esposito v. Verizon Communications Inc., basically alleged that Verizon wasn't being upfront about its "Administrative Charge." The plaintiffs argued that Verizon described this as a government-mandated fee or something outside their control, when in reality, it was just a way for the company to pad its bottom line without raising the "advertised" price of the plan. Verizon, for its part, denied any wrongdoing. They settled to avoid the headache and expense of a trial that could have dragged on for a decade.
What Really Happened with the Verizon Administrative Charge Settlement?
Let’s get into the weeds for a second. The core of this whole mess was transparency. When you sign up for a phone plan, you see a number—let’s say $70 a month. But when the bill hits your inbox, it’s $78.42. Some of that is legitimate taxes. Some is the Universal Service Fund. But then there was this "Administrative Charge" that kept creeping up.
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By the time the settlement was reached, that fee had grown significantly. It started small and ended up being a multi-dollar monthly hit. The lawsuit claimed Verizon misled customers by not including this fee in the advertised price and by making it look like a tax rather than a discretionary charge.
If you filed a claim by the April 15, 2024, deadline, you've probably been playing the waiting game. Court proceedings aren't fast. They are glacial. The final fairness hearing happened in late 2024, and while the $100 million sounds like a massive jackpot, once you split that between millions of people and subtract the massive fees for the lawyers who spent years on the case, the individual payouts aren't exactly "buy a new iPhone" money.
How much are people actually getting?
It’s not a flat rate. That’s the first thing people get wrong. The settlement structure was designed to pay out based on how long you were a customer and how much you were "damaged" by the fee.
Basically, the "Initial Award" was set at a base of $15. Then, they added $1 for every month you paid the fee, capped at a total of $100. But—and this is a big "but"—that was the maximum. If too many people filed claims, which they did, that pool of $100 million gets stretched thin. Most estimates suggest that a long-term customer who filed a valid claim is likely looking at somewhere between $30 and $60.
Not life-changing. But hey, it's a few tanks of gas or a nice dinner.
The Fine Print Nobody Talks About
One of the most interesting things about the Verizon administrative charge settlement isn't just the money. It’s the change in behavior. As part of the settlement, Verizon didn't just agree to pay out cash; they had to change how they talk about this fee.
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If you look at your bill now, you’ll notice the language is a bit different. They have to be clearer that this is a Verizon-imposed charge, not a government tax. It’s a subtle shift, but in the world of consumer protection, it’s a win. It prevents companies from hiding the true cost of service behind a wall of "administrative" excuses.
However, don't think for a second that the fee is gone. It’s still there. It’s just "disclosed" better now. Verizon still collects billions in these fees every year. This settlement was a slap on the wrist in the grand scheme of their annual revenue, which usually clears $130 billion.
Why did it take so long?
Legal systems are built for endurance, not speed. The case went through several rounds of motions. Verizon tried to get it dismissed. The plaintiffs had to prove that a "reasonable consumer" would be misled.
There's also the "Notice" phase. They had to send out millions of emails and postcards. Then there was the "Opt-out" period for people who wanted to sue Verizon individually (which is almost never worth it for a single consumer). Finally, the judge had to sign off on the "fairness" of the deal. If the judge thought the lawyers were taking too much or the customers were getting too little, they could have sent everyone back to the drawing board.
What Most People Get Wrong About Class Actions
There’s this weird myth that class action lawsuits are just for the lawyers. While it’s true that firms like DeNittis Osefchen Prince, P.C., and Hattis & Lukacs—the firms behind this case—get a massive chunk (often 25% to 33% of the total settlement), they also take all the risk. They spent years and likely hundreds of thousands of dollars in "man-hours" and filing fees without seeing a dime.
Without these types of suits, there would be zero incentive for a company like Verizon to stop adding hidden $2 fees. If a company steals $1 from 100 million people, no single person is going to hire a lawyer for $400 an hour to get their dollar back. The class action is the only tool that makes it "expensive" for a corporation to be sneaky with small amounts of money.
What You Need to Do Now
If you are waiting for your money, check your email for a confirmation from the settlement administrator. The checks (or digital payments) are generally issued through a third-party administrator, not Verizon itself. If you moved or changed your email since you filed the claim, you might have a bit of a headache ahead of you.
Here is how to handle the situation if you're still in the dark:
- Locate your Confirmation Code: When you submitted your claim on the official settlement website (usually
verizonadministrativechargesettlement.com), you should have received a code. Keep this. It's your only leverage if the payment goes missing. - Watch for Digital Payment Links: Many settlements now pay out via Venmo, PayPal, or digital Mastercard. These emails often look like spam. If you see an email from "Verizon Class Action Settlement" or an administrator like "Angeion Group," don't delete it immediately.
- Check the "Effective Date": Payments usually don't go out until all appeals are exhausted. Even after a judge approves a settlement, someone can file an appeal, which can lock up the funds for another 6 to 12 months.
The Future of Telecom Fees
The Verizon administrative charge settlement is a symptom of a larger trend. We are seeing more "junk fee" legislation and litigation than ever before. From airline seats to hotel "resort fees," the tide is turning against the practice of unbundling the price of a service to make it look cheaper than it actually is.
For Verizon customers, the lesson is simple: read the "Customer Service Summary" before you sign a new contract. It’s that one-page document they are legally required to give you that shows the actual total including fees. Most people skip it because it’s boring. Don't. It’s the only place where the $70 plan reveals itself to be $85.
Honestly, the best way to avoid these headaches in the future is to look toward prepaid carriers or MVNOs (Mobile Virtual Network Operators) like Mint Mobile or Visible (which is actually owned by Verizon but has a much simpler billing structure). These carriers usually include all taxes and fees in the sticker price. What you see is what you pay. It’s a much less stressful way to live.
If you’re still a post-paid customer, keep an eye on that "Surcharges" section of your bill. If you see a new fee pop up out of nowhere, Google it. Chances are, someone is already starting a new lawsuit about it.
Practical Next Steps for Consumers
Don't let your money sit in a settlement fund unclaimed. Even if you missed the Verizon deadline, these things happen constantly in the tech and telecom world.
- Check your junk mail for "Notice of Class Action": Set up a filter for these terms so they don't get deleted. You’d be surprised how many $20 checks you might be owed from various services you used five years ago.
- Audit your current Verizon bill: Go to the "Bill Details" section in the My Verizon app. Look for "Administrative and Telco Recovery Charge." Compare that amount to what you were paying a year ago.
- Update your contact info: If you have an active claim for any settlement, ensure the administrator has your current mailing address. Most checks are void after 90 days. If it goes to your old apartment, you're out of luck.
- Verify via the Official Portal: Only use the specific website mentioned in the court-ordered notice. Never give your social security number or full bank account details to a site that "claims" to be a settlement administrator without verifying the URL through a reputable news source or the court's own records.
This settlement won't make you rich, but it serves as a necessary check on corporate power. It forces a bit of honesty into a billing system that has spent decades becoming intentionally confusing. Stay vigilant with your statements; no one else is going to watch your wallet as closely as you.