Investors Sue Verizon Communications Inc (NYSE:VZ)
Verizon Communications Inc (NYSE:VZ) is the United States’ 2nd-largest phone company. It has been recently sued by one of its investors. The allegation was that some officers and directors of the company had violated their management duties. The investors said that this mismanagement had resulted in fines in the range of $360M in wireless-overcharges.
From 2007-1010, Verizon Communications Inc (NYSE:VZ) had added $1.99 as bogus small-data exchange-fees to its wireless bills. Later, when an investigation was launched by the Federal Communications commission, the company said that this had been a mistake. As per the complaint that was filed yesterday- the company repeatedly denied that they had been overcharging. In 2010, this overcharging had been categorized as accidental.
In 2010 October, the FCC announced that Verizon Communications Inc (NYSE:VZ) would have to shell-out a record $25M to stop this investigation and that it would refund a minimum of $52.8M to around 15M customers in relation to these mystery fees. This had been mentioned in the FCC statement at that point of time. This case is referred to as a derivative lawsuit and had been filed on behalf of Verizon Communications Inc (NYSE:VZ). It seeks a certain amount of unspecified damages from the company’s officers and directors at the time these overcharges took place and that these charges will have to be paid to Verizon Communications Inc (NYSE:VZ).
In Thursday’s trading, Verizon Communications Inc (NYSE:VZ) dropped by 0.79%. The opening price of the shares was $51.04, which climbed to an intraday high of $51.19 and dipped to a close of $50.42. Approximately 10.36 million shares were traded on Thursday while an average volume of 16.12 million shares were traded over a 30 day period. The 52-week low of Verizon Communications Inc (NYSE:VZ) shares is $40.51 and its 52-week high is $54.31. The company has a market capitalization of $144.30 billion.