Verizon Wireless has agreed to a $64.2 million settlement in a class action lawsuit that alleged it billed phone customers for calls that were supposed to be free.

The proposed settlement (PDF) was filed last week in US District Court in New Jersey and first reported by Law360.

"The motion asks US District Judge Jose L. Linares to sign off on the agreement, which would include a $36.7 million cash payment from Verizon in addition to $27.5 million in 'calling units' that will be accessible via personal identification number," Law360 wrote. The lawyers who represented consumers will get $19.26 million from the total settlement amount.

Damages to consumers had been estimated at $156 million.

The lawsuit was filed in 2006, with plaintiffs alleging that "(a) Verizon Wireless had an undisclosed billing policy and practice under which Verizon Wireless billed subscribers on its Family SharePlans for usage by the Plans' primary and secondary phone lines in a manner different from the manner in which Verizon Wireless was contractually required to bill, in violation of state and federal law; and (b) Verizon Wireless charged certain customers for In-Network talk time even though those customers' calling plans provided for free In-Network calling, in violation of state and federal law," according to the settlement.

Verizon did not acknowledge any wrongdoing. Customers who were allegedly overcharged between May 2002 and May 2006 will be eligible to get refunds or credits if the settlement is approved.