Verizon agrees to settle lawsuit

From Times Wire Services

Verizon Wireless agreed to pay $21 million to resolve a consumer lawsuit targeting early cancellation fees in mobile phone contracts.

The settlement, announced during a trial in Oakland, resolves consumer claims in the U.S. without an admission of wrongdoing by the company.

The Verizon agreement doesn’t affect current contracts because cancellation fees now decrease over time, a spokeswoman said. The contracts covered by the settlement have a flat-rate cancellation fee and were issued before Verizon Wireless introduced the declining-fee structure in 2006.