$13M settlement reached in wireless store commission lawsuit

A judge on Monday approved a $13 million settlement in a class action lawsuit that disputed the way an operator of Verizon stores was calculating commissions.

Attorneys will receive fees of 40 percent of the settlement, over $5 million, according to the order signed by District Judge Timothy Williams.

The suit was filed in 2017 by Allan Herdemian, who had worked in Clark County Verizon Wireless stores operated by a company that Go Wireless bought, according to court records.

“As a result of alleged glitches in Go Wireless’s computer system, as well as unintentional alleged glitches in the interaction between Go Wireless’s computer system and Verizon Wireless TM, Go Wireless employees were not paid certain commissions earned and due,” the complaint stated.

The lawsuit alleged breach of contract, failure to pay wages and unjust enrichment.

Verizon, which was not named as a defendant, did not respond to a request for comment.

Allison Kheel, a lawyer who represented Go Wireless Holdings, declined to comment. Attorney John Bailey, whom a plaintiffs’ attorney identified as the lead Go Wireless attorney, and attorney Paul Williams, who was involved in finalizing the settlement, did not respond to requests for comment.

“From Mr. Herdemian’s standpoint, he couldn’t get satisfactory answers from the company, and so he quit and then reached out to lawyers, and that’s how the suit started,” plaintiffs’ attorney Michael Gayan said.

The class was eventually expanded to include over 15,000 people, and almost 8,000 responded to a notice and will claim settlement funds, according to Gayan.

He said the amount each person will receive depends on the person’s sales performance. About 20 people will receive over $10,000, he said, but nearly 4,000 claimants will receive between $100 and $1,000.

Before the class was certified, Gayan said, Herdemian was offered $5,000 to settle.

“They clearly didn’t think the case could or would get certified and would result in what it ended up in six or seven years later,” he said.

Herdemian is receiving $12,500 for his efforts in bringing the case, plus his share of the settlement, Gayan said.

Contact Noble Brigham at nbrigham@reviewjournal.com.