Verizon Wireless has settled class action suits in California regarding customer complaints over early termination fees (ETFs). The carrier has agreed to pay $21 million, which will go to plaintiffs and attorneys' fees; Verizon said the settlement resolves multiple claims and represents a cap on what the company will have to pay. The trial for the suit began last week.
Verizon settled the suit without admitting any wrongdoing. A spokesman for the carrier called the suit a “distraction,” saying this was a “quick way to resolve it.”
Sprint Nextel is facing several similar suits.
Partly in response to customer suits like the one Verizon just settled, the FCC has recently been discussing regulating ETFs; FCC Chairman Kevin Martin also said that regulating ETFs nationally would protect customers. While carriers already have moved to begin prorating fees to reflect the length of time customers have left on their contracts, EFT policy still varies carrier to carrier.