I purchased my phone in May and it has never updated properly. I thought perhaps this was an update error that would resolve itself, now I believe this is something else. My phone tries to update almost every day and is not successful.
From Android Forums: Just solved this, seems to be an error when downloading via OTA. Connect the phone to a computer and install the Verizon Software Upgrade Assistant. Let it do it's thing, takes roughly 15 minutes but went through where it was repeatedly failing trying the OTA method.
You might also try Samsung Kies. You can download Kies from Samsung's support site. I found no other official or supported methods of repair by the end user.
Of course you can still appeal to Verizon for a replacement due to being under warranty, however, it will be a refurbished unit.