Verizon Wireless In Billion-Dollar Lawsuit

Verizon is about to become the target of the largest class action suit ever certified in arbitration. The suit covers the over 70 million former Verizon Wireless subscribers and could have a pay out as high as $1 billion. Yes. A billion. Claimants in the suit are allowed to dispute the $175 early termination fee that Verizon has since started prorating.
Termination fees are meant to cover liquidation damages, which result from a breach of contract. The problem is liquidation damages are hard to quantify, leaving the absurdly high early termination fees vulnerable to litigation.
Just think, with that $175, you'll now be able to pay the early termination fee on the AT&T service you're not so happy with.
From BetaNews
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Comments
10
Subscribe to commentsPat LewisFeb 13th 2008 8:12AM
Verizon, and its predecessor, are the only providers I have ever had - 14 years now. I've never considered changing due to the excellent service and good customer relations they have offered. Therefore, I've never tried to get out of my contract but would not any way until it was over. You agree to it - you stick with it.
TabithaJan 31st 2008 11:20AM
Verizon charged me 300 for mine. I had horrible service with them and refused to go back. I think it is about time something like this is done.
Rob2tallJan 31st 2008 11:27AM
This suit is the tip of the iceberg as far as Verizons record of scams against its nationwide users.In early December of 2007, Verizon sent out invitations to its customers offering a discount plan called "Freedom Essentials" for just $24.99 a month. After calling on December 12th and signing up, a third party who is supposed to verify your order was contacted and recorded the call for proof I signed up. Verizon reps told me to cancel my other long distance carrier-which I did, but then never added me on to the service.They claimed later that they had no record of any change to me service-it seems Verizon erased all the orders for service to cover up a huge scam.They required each customer to pay the normal $51.00 a month fee two months in advance, prior to the $24.99 fee taking effect.After you paid double , twice-they were going to "credit" you for the advance fees later on.Do the math...if 70 million customers switched to this plan-but paid out $102.00 in advance-Verizon would bank over $7 billion in advance fees and that would pay off any claims for their early termination law suit the now have to shell out over 1 billion for! With over 5 billion in banks-that props up their earnings for 2007 and allows stock values to soar.Much like the ENRON scam-because now Verizon has to pay all subscribers back!
If you signed up for that service contact your State Attorney General and file a complaint online.Its a case of Wire Fraud,Internet Fraud,and
Tax Fraud-and they are getting away scott free!
IsisJan 31st 2008 12:07PM
As a current and long time customer of Verizon, only once has there been an issue. It was handled well, and beyond my satisfaction. We currently have 4 cell, 1 wireless internet and three home numbers with them--for less than $250 a month. AT&T was looked at when we moved in 05 but why in the world would I change just to pay almost double. In fact, we recently updated to the new Juke for my husband and two new choc for my daughter and myself. After paying less than $100 before rebates for all three--and then using $150 in rebates to buy all the desired accessories---I am in no hurry to go anywhere-plus they have a good military discount.
CashJan 31st 2008 4:56PM
Verizon has been great to me, my family and my friends. If you signed the contract then you should stick to the contract. The early termination fee is not a surprise it clearly states you will be charged a fee if you break the contract. People will sue over anything nowadays and we wonder why insurance coverage costs so much.
Linda ChristensenJan 31st 2008 1:25PM
As an employee of Verizon Telecom, I have a Vz wireless phone and have had the acount for approx. 9 years. Any issues that have come up, the personnel in the Vz stores have been very accomodating, not only to me, but as I observed to others while in the store. Example: Last year I had LG inexpensive cellular phone. While traveling for business, in Tampa, it went out and would not work. I drove that night after work to a Vz Wireless store. They were extremely helpful. Even though the phone was out of warranty and they did not have the inventory to replace it in ther store, they agreed to send one to my home with a 2 day delivery, at no charge to me (for the phone or shipping) to make me a satisfied customer. It was clear to me they would have done this for any customer; not just because I am a Verizon employee. Kuddos to the Wireless store employees in Temple Terrace (Tampa) for GREAT providing me with a GREAT customer experience.
PhoenixFeb 6th 2008 12:04AM
As of today I am a former Verizon customer. I was one of the many who halfheartedly signed away onto a 2 year contract, but never planned to break it... I've changed service in the past because my wireless had extremely poor reception and my cell would drop calls like a hot potato. I only came to Verizon because my previous service was missing a feature I wanted. When I wanted to upgrade the service was great and live; when I had trouble with my billing I'd get forwarded to an automated system. I'm going back to T-Mobile and begging forgiveness for leaving them now after being with them for years, and have prepared myself to pay that ridiculous termination fee for Verizon. Most people do not abuse contractual agreements and usually have legitimate reasons for wanting to cancel service; the whole premise of an early termination fee is nothing but bottom line politics as far as I'm concerned.
joJul 19th 2008 2:34PM
I’ve been with Verizon for a long time mainly because work required. I would have gone with someone else long ago. Their customer service is none existing. You get transferred so many times eventually you have to give up. I got into a contract that I never agreed to. Originally I had a blackberry with a standard plan. Now I was told that it was not possible as a blackberry needs a data plan. When I confronted them, no one could give me a straight answer. It is on papers the amount I was paying before and. I moved to a different provider now and sure enough I am charged $160 for early termination fees for a contract that doesn’t exist. I am going to file a complained against them as their moronic practice needs to be deal with.
CynthiaAug 4th 2008 2:13PM
This happened to me about a few years back. I was a verizon customer for 2 years and my dad had poor credit and asked if I could get him a cell phone so of course I did and they put me on a 1 year agreement. A year later after the contract expire I upgraded my phone. Unhappy few months later with the service I cancelled and went to another provider. Recently I had my credit report checked to purchase a home and low and behold Verizon Wireless 808.00. This was early termination fees for both phones with years of interest. I called and they said because I changed my phone I was put on another 2 yr agreement and I did not sign anything so I havent paid it, but now its being paid in order to maintatin good credit. Now what? Should they give me my money back or do I need to sue them?
IcanthearyounowNov 6th 2009 6:06AM
How do you start a class action suit? I want to stop cell phone co. from selling a 2 year contract on a product that last 1 year and forcing you into another 2 year deal every year because you activated your replacement phone. You don't even have to sign a contract to have one. I don't want replacing a bad product to have anything to do with my contract. I have Verizon and have had to fight them yearly on extra fees they add to my bill one time adding up to $2400.00 they tell me I agreed to. I don't even make that much in a month.