Verizon and T-Mobile Settle Dueling Lawsuits Over Ad Campaigns

Verizon Wireless and T-Mobile have resolved a legal dispute in which both companies accused each other of false advertising, ending a court battle over marketing campaigns that promised significant savings to new customers.

A stipulation of dismissal for Verizon's lawsuit and T-Mobile's countersuit was filed on Friday in a Manhattan federal court, according to a Reuters report. The terms of the settlement were not disclosed.

The Disputed Claims

The legal conflict began in February when Verizon sued T-Mobile over its advertising. The dispute centered on aggressive marketing tactics used by both carriers to attract subscribers in the highly competitive U.S. wireless market.

Verizon's lawsuit specifically targeted T-Mobile's "Save Over $1,000" campaign. The suit was later expanded to include claims that T-Mobile misled customers with promises of:

• More than $3,700 of savings over five years compared to Verizon and AT&T.
• An offer to "save up to 20% vs. the other big guys."

Ad

In a countersuit, T-Mobile alleged that Verizon's own ad campaign, which featured historical figures like George Washington, was itself bogus because Verizon could not guarantee customers a "better deal."

Background and Context

The resolution comes more than five months after U.S. District Judge Lewis Kaplan granted a preliminary injunction in Verizon's favor, ordering T-Mobile to halt its "Save Over $1,000" campaign. According to the report, settlement talks had included discussions about creating a framework to resolve similar advertising disputes in the future, potentially reducing public legal battles between the rivals.

As of its latest quarterly report on June 30, Verizon had 147 million subscribers. T-Mobile reported slightly fewer subscribers before it changed its method for disclosing subscriber metrics this year. Representatives for Verizon and T-Mobile did not immediately respond to requests for comment on the settlement.