Verizon News & Notes

$100 Million VZ Settlement

To kick off 2024, Verizon came to an agreement with nearly 10,000 customers to resolve claims that Verizon deceived them by adding “unfair and not adequately disclosed” fees to monthly bills.

That settlement was granted preliminary approval by a New Jersey state judge in December 2023 and is awaiting a “fairness hearing,” scheduled for March 2024.

Verizon released a statement denying customers’ complaints, saying the company “clearly identifies and describes its wireless consumer admin charge multiple times during the sales transaction, as well as in its marketing, contracts and billing.”

To avoid being subject to multi-million dollar arbitration fees, Verizon attempted to require litigation be brought in smaller batches of 10 cases at a time; meaning each batch of 10 plaintiffs would be forced to wait for the resolution of the previous batch of 10 bellwether cases before their litigation could move forward.

Verizon argued that the batching of cases would be good for litigating Verizon customer disputes, due to the fact that if the company were to lose earlier arbitrations, it would incentivize Verizon to settle with further litigating customers without having to go through the rigmarole of arbitration against the telecom giant.

However, both California and New Jersey courts asserted that Verizon’s arbitration contract was unenforceable, due to the length of time Verizon customers would have to wait for the previous batches to be resolved.

The 9th U.S. Circuit Court of Appeals and New Jersey’s Supreme Court were set to review Verizon’s attempts under due process. In order to avoid such scrutiny, Verizon opted instead to strike a $100 million deal with plaintiffs days before. The settlement was a cumulation of four lawsuits combined in New Jersey – where Verizon is headquartered.

Not all plaintiffs and their attorneys are on board with the settlement, as Murphy Advocates, and Goldstein, Russell & Woofter filed both a motion to intervene and a motion to compel on behalf of their 9,970 Verizon clients, which would enable their customers to file arbitration en masse.

Murphy and Goldstein Rusell claimed that their clients would be overwhelmed by the onerous requirements to opt out of the settlement unless the court rules that their class action can continue.

In a statement, the company argued that their objection is not to the settlement itself, but rather that Verizon attempted to use the settlement to eliminate their litigation.

Verizon customers should keep an eye on their mailbox. Postcards and emails are being sent to eligible customers with instructions on how to claim their portion of the settlement, which can range from $15 to upwards of $100.

For those who receive an email or mail with a Notice ID and confirmation code, there is a dedicated website with instructions, which gives plaintiffs the option to receive their settlement via check, Venmo, or bank wire.

To receive a settlement portion, U.S. based Verizon customers with postpaid wireless accounts between January 1, 2016, and November 8, 2023, must file a claim before April 15, 2024. A postpaid account refers to an account that allows you to pay your bill after you’ve received service each month.

Customers who opt not to file a claim forfeit any future right to sue Verizon about issues covered in the present lawsuits.

Wireline Business Results in $5.8 Billion Write-Down

Verizon’s wireline business took a hit in the fourth quarter of 2023, when the company announced that it would write-down $5.8 billion; bringing the new value of the unit to $1.7 billion, as of December 31st, 2023.

Such a significant write-down indicates that Verizon does not anticipate the decline in the value of its wireline business will improve any time soon.

This move further demonstrates the growing shift in the telecommunications industry, as more people, and enterprises, cut the cord and move from landlines and wireline services towards being totally reliant on wireless, cellular data.

Focused on the company’s robust businesses and government clients, Verizon said that it cut its financial projections for its Business unit after a five year review of the vitality of the business concluded that the carrying value of the business was far above the fair market value.

As a result of declining wireline and wireless equipment revenue, among other factors, Verizon Business saw a four percent decline in revenue in 2023 from $7.5 billion the previous year. Despite this, Verizon’s wireline business still accounts for more than a fifth of the company’s revenue.

Many BellTel members spent their careers laying cable, maintaining and setting up, or servicing wireline service, only to see it fade from being the primary form of communication in our lifetimes.