$1 Billion ETF Class Action Against Verizon Approved

Somehow, an arbitrator has approved a massive $1 billion class action lawsuit against Verizon over their early termination fees. In letting the lawsuit proceed, the arbitrator wrote, “…millions of class members are entitled to adjudication of the central common questions of fact or law in this arbitration related to whether the $175 early termination fee imposed by respondents Cellco Partnership d/b/a Verizon Wireless … is based upon an unenforceable liquidated damage clause.” With cellphone companies switching to prorated ETFs and the rise in ETF-related lawsuits around the country, one wonders if we won’t see the death of ETFs in the next few years. By that time, cellphone companies will have figured out a new technique to keep people from leaving their contracts.

Verizon Wireless faces class action over ETFs [RCRWirelessNews] (Thanks to Steve!)