Despite claiming they would not do so, according to Wired the telecommunications giant is now disconnecting copyright infringers. They are under no obligation to do so although big content is certainly pushing the three strikes plan hard here and abroad. They also aren’t specifically barred from terminating service for reasons of infringement. I imagine their terms state they can disconnect customers for whatever reason they see fit. They are unlikely to get snarled into a suit by the FCC, unlike Comcast. Not that the throttling complaint against Comcast is faring all that well.
Wired was unable to solicit any substantive comment from Verizon though they did confirm they have disconnected an unknown number of subscribers. Verizon, other ISPs and the RIAA are also cagey in the comments as to whether any such action is based on agreements between them.
It is not clear what recourse affected customers might have. If they were not in fact infringing, I suppose they could press breach of contract claims. In the absence of a broader regime, it may just be simpler for them to seek service elsewhere.
Hopefully we get some more details, soon.