Verizon Wireless class-action could be costly settlement

A California judge cleared the way for what is believed to be a record settlement in a class-action lawsuit against Verizon Wireless in which the nation’s No. 1 mobile-phone operator has agreed to make broader disclosures and provide free headsets, billing credits and vouchers for accessories, whose total cost could top $1 billion. Judge William C. Pate of San Diego Superior Court on Thursday gave preliminary approval to the settlement. The lawsuit, filed in April 2000 on behalf of 42 million subscribers by the law firm of Finkelstein & Krinsk, challenged the carrier’s billing practices and its failure to inform subscribers of various charges. “The important thing is the settlement provides substantial benefits in both increased disclosure and valuable billing credits which were achieved with the help of consumer organizations,” said Howard Finkelstein. The law firm had backing from The Wireless Consumers Alliance, Consumers Union and the Utility Consumers’ Action Network of California. Verizon Wireless and its attorneys did not immediately respond to requests for comment.