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July 11, 2008

Yesterday, Verizon Wireless said it has settled some class action lawsuits in California regarding customer complaints over early termination fees (ETFs).

The company has agreed to pay $21 million, which will cover plaintiffs'claims and their attorneys' fees.

As is often the case in similar actions, Verizon settled the lawsuits without admitting any wrongdoing.

A Verizon spokesman called the suit a “distraction,” saying this was a “quick way to resolve it.”

The wireless carrier also said the settlement resolves multiple claims and represents a cap on what the company will have to pay. The trial for the suit began July 1st.

Partly in response to customer suits like the one Verizon just settled, the FCC has recently been discussing regulating ETFs.

FCC Chairman Kevin Martin said that regulating ETFs nationally would protect customers.

While wireless carriers already have moved to begin prorating fees to reflect the length of time customers have left on their contracts, specific ETF rules still vary a lot from one carrier to another.

For its part, Sprint Nextel is also facing several similar class action lawsuits from its users.

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Source: Verizon Wireless.