Verizon to pay $1.3 million to settle Mass. overbilling claims

The telecom company Verizon has paid the state of Massachusetts $1.3 million to resolve allegations that it overcharged the state for phone service.

The settlement, which was not filed in court, was reached after an investigation by Attorney General Martha Coakley’s office found the company had overbilled agencies and municipalities from 2006 to 2012. The attorney general began investigating after a whistleblower filed suit against Verizon separately.

Under the terms of the agreement, state and municipal agencies may be eligible to receive additional payouts from Verizon. The largest overcharge was allegedly applied to the MBTA, which paid $52,000 in excess payments. Most agencies, including school districts and social service providers, allegedly were overbilled by amounts around or below $10.

Verizon did not admit or deny wrongdoing.

“After a thorough review, Verizon and the attorney general have agreed to settle certain billing issues under a now-expired state contract,” said Verizon spokesman Phil Santoro in a statement. “We have a long history of providing reliable, cost-efficient services and promptly addressing issues that can arise under agreements as complex and wide-ranging as the state’s blanket contracts.”