Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Verizon Communications Inc. (VZ) ‘Cramming’ Settlement Challenged by FTC

Verizon Communications Inc. (NYSE:VZ) thought it had a class-action settlement finalized with subscribers who claimed that Verizon “crammed” its phone bills with added charges. The leader in mobile telecommunications was about to put this chapter behind it, when … the federal government stepped in and nixed the deal, claiming it was not fair, reasonable and adequate.

Verizon Communications Inc. (NYSE:VZ)

The Federal Trade Commission filed a friend-of-the-court brief on behalf of the class in the lawsuit, claiming that the settlement does not do enough to protect consumers – for example, the settlement document doesn’t contain languages informing the class members that those who don’t opt out of the settlement would be prohibited from making any claims against Verizon Communications Inc. (NYSE:BZ) or any third-party merchants involved in the “cramming” scheme.

The class action suit was brought forth by Verizon Communications Inc. (NYSE:VZ) subscribers, who claimed that Verizon deceived its customers by adding charges to phone bills without the consent of the customers – charges that came from third-party merchants, aggregators and Verizon’s own third-party billing and collections systems. In addition, Verizon was alleged to have not verified consent for the charges with customers and instead went on the word of its third-party partners to allow the charges, then stretched out the deception by not specifically labeling the charges properly.

Also, according to the brief filed against Verizon Communications Inc. (NYSE:VZ) on behalf of the class of subscribers, the concept of “cramming” – or placing unauthorized charges on a phone bill – in inherently deceptive and not meant to grab consumers’ attention,  the re may be many more subscribers who don’t realize they’ve been charged wrongfully and may not know they have a right to make a claim despite not being part of the class action.

The result of this settlement may play a role in investments in Verizon Communications Inc. (NYSE:VZ) stock. It is a farily popular stock among hedge funds like Ray Dalio’s Bridgewater Associates.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!