Verizon Wireless Settles Early Termination Lawsuit

The Associated Press is reporting that Verizon Wireless has agreed to pay $21 million to settle a lawsuit filed by California customers upset with the company’s early termination fees, one of the case’s lawyers said on Wednesday.

“We are recovering cash” that would “be available” to Verizon mobile phone customers who paid fees to end their contracts early, said Alan Plutzik, an attorney for the customers, in the report.

It’s not yet clear just how many customers will be able to receive cash as part of the settlement, and Verizon has yet to comment on the judge’s decision. These cancellation fees, which usually cost between $150 to $225 to end a customer’s cell phone contract earlier than the usual two-year agreement specifies, have been the target of much derision in the industry. Recently, the carriers have begun to pro-rate the cancellation fees, bowing to consumer pressure.