Verizon Class Action Says Identity Theft Mishandled

A class action lawsuit claims that Verizon violated California laws by mishandling a debt resulting from identity theft.

Plaintiff Jesse Kaufman says he had his identity stolen by an unidentified John Doe from California in April 2017.

The identity thief allegedly used Kaufman’s information to purchase a cell phone and cell phone equipment from Verizon for a total of $2,562.

Kaufman reportedly discovered that his identity had been used without his authorization and filed a police report. However, in May 2017, Verizon allegedly billed Kaufman for the $2,500 made by the identity thief.

In order to contest the charge, Kaufman says he alerted the company in writing that the debt was a result of identity theft. He also claims that he included all verification documents he had, including the police report, in his response. Verizon reportedly stopped billing him for the debt and he thought it was resolved.

However, without his knowledge, Verizon allegedly reported the debt as an actual debt to credit reporting agencies and simply noted that the debt was “disputed.” As a result, the debt reportedly appeared on Kaufman’s credit report started in June 2017.

In December 2018, Verizon allegedly sent a letter to Kaufman demanding that he fill out tax form 1099-C so that the company did not report to the IRS.

The letter was reportedly accompanied by a W-9 form and instructions stating: “An individual or entity (Form.W-9 requester) who is required to file an Information return with the IRS must obtain your correct taxpayer identification number.”

Kaufman’s attorney responded to the letter by reminding the company that Kaufman “never had an account with Verizon for service or equipment” and that “any transactions that may have occurred were by an imposter using Jesse Kaufman’s personal Identification information without his knowledge or authorization.”

“Presumably you researched the matter based on the information I previously provided and determined that Jesse Kaufman had no liability to Verizon as you ceased billing him,” the attorney noted, according to the Verizon class action.

The Verizon class action lawsuit claims that the telephone company never responded to the letter but reported the debt two more times to credit reporting agencies.

However, in February 2019, Kaufman allegedly received a 1099-C tax form that named him as the debtor and Verizon as the creditor. The cellular provider reportedly filed the form with the IRS, identifying the “equipment write-off” as a debt write off of $2,280.

Kaufman claims that Verizon severely mishandled the identity theft situation by failing to investigate Kaufman’s identity theft claim, continuing to report the debt to credit reporting agencies, sending a W-9 threat letter, and filing a 1099-C form with the IRS.

Kaufman seeks to represent a Class of California consumers whose identity was fraudulently used to create a debt to Verizon and who filed a police report, gave notice to Verizon, and continued to suffer from debt collection and/or credit problems from Verizon.

This Class includes several subclasses of consumers who may have sent Verizon a second notice, had their debt reported to a credit reporting agency, and/or had a 1099-C filed with the IRS.

Kaufman also seeks to represent a second Class of consumers who were sent a W-9 threat letter demanding the payment of debt and the completion of the W-9 form.

The Verizon class action lawsuit seeks civil penalties, damages, punitive damages, restitution, injunctive relief, restitutionary relief, court costs, and attorneys’ fees.

Kaufman and the proposed Class are represented by S. Chandler Visher of Law Offices of S. Chandler Visher and Alan M. Kaufman.

The Verizon Identity Theft Class Action Lawsuit is Kaufman v. Verizon Communications Inc., et al., Case No. 4:19-cv-03888-DMR, in the U.S. District Court for the Northern District of California.

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