Verizon Class Action: Copper Phone Lines Allowed to Deteriorate

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A class action lawsuit alleges that Verizon Communications Inc. has violated consumer protection laws by charging fees for the upkeep of its regular telephone service over old copper phone lines while intentionally allowing them to degrade over time. The complaint alleges that Verizon is phasing out its “Plain Old Telephone Service” in favor of its new fiber optic service.

Plaintiff Nicholas Johnnidis states that he is a dentist, and has been a Verizon telephone customer for 20 years. Johnnidis claims that he relies on the stability of telephone service over old copper wires for his work and for emergency needs of his 90-year-old mother, because copper telephone lines work even through extended power outages.

However, the complaint alleges that two years ago Johnnidis and his mother started to hear static over the telephone when it rained. According to the class action, when Johnnidis reported the issue to Verizon, the technician tried to get him to switch to Verizon’s fiber optic “FiOS” product.

The Verizon copper telephone line maintenance fee class action lawsuit contends that Johnnidis is not alone. The complaint cites numerous news reports and technical articles that state Verizon is intentionally attempting to get customers switched over to its fiber optic telephone service by not repairing its copper lines.

For example, the class action cites a letter from 29 consumer organizations, including the union of workers who repair telephone lines for Verizon, from June of 2015 that states “Verizon was neglecting its copper telephone lines for fiber optic data lines to ‘upsell’ customers with more expensive services in its FiOS product.”

In addition, the complaint transcribes part of a report by Verizon’s Chief Technical Officer explaining to investors that Verizon would use its “systems to identify when [customers] call in for trouble that we automatically go out and not repair the copper but immediately flip them over to FiOS.”

The main issue the class action asserts is that Verizon is intentionally neglecting its copper telephone lines while it continues to charge its customers a maintenance fee for those same lines. Verizon charges all of its customers a “Line Charge/Access Charge” fee and a “Right of Way” fee that the complaint argues are “uniformly fraudulent,” because Verizon does not spend that money on its copper telephone lines. According to the class action, Verizon charges its customers around $27 each for maintenance fees, when in fact its actual maintenance costs are much less, and the extra money is diverted for its wireless business.

Johnnidis seeks to represent a Class of all persons in the U.S. “who were Verizon copper telephone line customers who were charged network maintenance fees.” For the alleged consumer protection law and fraud violations, the class action requests restitution and punitive damages, as well as a court order “compelling Defendant to adequately maintain its copper telephone lines to the standards required under federal and state statues.”

The plaintiff is represented by Paul C. Whalen of the Law Offices of Paul C. Whalen, P.C., and Jasper D. Ward IV and Alex C. Davis of Jones Ward PLC.

The Verizon Copper Telephone Line Maintenance Fee Class Action Lawsuit is Nicholas Johnnidis v. Verizon Communications Inc., Case No. 1:16-cv-03454, in the U.S. District Court for the Southern District of New York.