Verizon Rebuffed by Supreme Court on $47 Million FCC Refund

The US Supreme Court refused to let Verizon Communications Inc. try to recoup $47 million it paid after being accused of privacy violations by the Federal Communications Commission.

The justices on Monday turned away Verizon’s request for an unusual tweak in a June 4 high court ruling so that the company could seek to recover the money. Verizon says it paid only because it was misled by the FCC’s characterization of the so-called forfeiture order at the center of the clash.

The June 4 ruling was a mixed one. The majority said telecommunications companies can’t immediately demand a jury trial when they receive a forfeiture order. At the same time, Chief Justice John Roberts’ opinion characterized those orders as preliminary statements that don’t require payment until court proceedings take place.

As part of the ruling, the court said it was leaving open Verizon and AT&T Inc.’s contention that they were duped into paying and entitled to refunds. But Verizon said it doesn’t have an avenue to press that claim because the high court didn’t formally send the case back to the 2nd US Circuit Court of Appeals for additional proceedings.

Verizon asked the justices to add wording to the opinion so that the 2nd Circuit could consider the issue. The high court rebuff doesn’t affect AT&T, which will be able to seek reimbursement because its case is procedurally different from Verizon’s.

The FCC accused AT&T and Verizon of illegally sharing access to customers’ location data and failing to adequately protect against unauthorized disclosure. Each company received an order saying that it was “liable for a monetary forfeiture” and that payment “shall be made” within 30 days. Companies have long treated forfeiture orders as demanding immediate payment.

The cases are Federal Communications Commission v. AT&T, 25-406, and Verizon v. Federal Communications Commission, 25-567.