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Verizon Wireless Agrees to Settle Lawsuit

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From Bloomberg News

Verizon Wireless Inc., the biggest U.S. mobile-phone company, confirmed Wednesday that it had agreed to offer each of its current and former customers benefits worth as much as $45 in a sweetened bid to settle a lawsuit alleging improper billing and disclosure.

San Diego Superior Court Judge William Pate gave preliminary approval in November to the revised class-action settlement after questioning a 2002 accord, worth as much as $30 to each customer. Verizon Wireless, in an e-mail to customers Tuesday, denied wrongdoing in the claims, which date between Jan. 1, 1991, and Nov. 2, 2003.

The suit, filed in 2000, claims the company failed to fully disclose certain fees and limitations of its service, and improperly billed some U.S. customers. The proposed settlement comes as U.S. wireless companies are under pressure to improve service because of a federal rule allowing customers to change carriers without giving up their numbers.

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Verizon Wireless allegedly charged so-called roaming fees when it shouldn’t have and falsely advertised its service as nationwide, according to the lawsuit. The Bedminster, N.J.-based company, a closely held unit of Verizon Communications Inc., had 36 million customers as of September.

The company didn’t say how many customers would be compensated.

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