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Verizon Communications Inc.

A class action lawsuit has been filed against the cell phone company for allegedly overstating it subscribers to increase advertising rates. The lawsuit was filed in US District Court in Manhattan and claims Verizon Communications inflated its advertising prices for its fiber optic cable service by overstating the number of subscribers to the service by 33% percent in its second quarter.

Verizon allegedly reported the number of prospective subscribers plus its active subscribers as its actual subscriber figures for the FiOS service in order to increase its advertising rates. Verizon claims its pending subscribers usually sign on within two weeks, but the class action alleges it can take up to 10 months for them to become customers.

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Last updated on Oct-4-07