Verizon soon to face the biggest class action lawsuit yet

Yesterday, a class action suit four years in the making was certified against Verizon Wireless over the company's unfair early termination fees.

A trial date has not yet been set, but Eugene I. Farber, the senior arbitrator/mediator for the American Arbitration Association in White Plains, NY, has certified the 70 million former Verizon Wireless subscribers as a class entitled to engage in litigation against the cellular provider.

Farber said in his 35-page statement that "as a matter of equity and fairness," claimants are allowed to act as a class disputing the $175 early termination fee they were imposed by VZW on the grounds that it is based upon an unenforceable liquidated damage clause. Liquidated damage clauses are meant to be a fair compensation for money lost through a breach of contract, where the loss is difficult to quantify.

This group now stands as the biggest class yet certified in arbitration, and the biggest class ever certified on a contested motion in forum, litigation, or arbitration of any kind. The payout could reach as high as one billion dollars.

Since 2006, Verizon has offered its early termination fees prorated.

Another class action suit in the mobile realm was recently settled by handset maker Palm. That company agreed to provide a cash rebate of $50 to purchasers of the Treo 650, and $75 for the Treo 600, both of which required numerous repairs and replacements due to freezes and unintentional restarts.

Those unfortunate users who terminated their contracts with Verizon due to a constantly malfunctioning Treo 600 may finally be receiving some money in recompense, and each stand to get as much as $250 from these combined suits.