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Sprint and Verizon Settle Lawsuit Over Illegal Charges, Customers to See Refund

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Sprint Corp. and Verizon Wireless will pay a total of $158 million to resolve nationwide allegations that they engaged in mobile cramming, a practice in which cell phone providers place unauthorized third-party charges on customers’ bills.

Under the terms of a settlement announced today by New York Attorney General Eric Schneiderman and 49 other state attorneys general, Sprint will pay $68 million and Verizon will pay $90 million.

Of those amounts, $50 million will be refunded to Sprint customers and $70 million will be refunded to Verizon customers through “redress” programs supervised by the Federal Consumer Financial Protection Bureau.

Sprint will also pay $340,301 to New York, Verizon will pay $453,900 to New York as part of the settlement.

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