Verizon and T-Mobile resolve lawsuits over cellphone savings ads

  • Verizon Wireless and T-Mobile dismissed lawsuits over allegedly deceptive cellphone savings advertisements.
  • T-Mobile ads claimed savings exceeding $3,700 over five years and up to 20% versus rivals.
  • A Manhattan federal court filing followed Judge Lewis Kaplan’s preliminary injunction against T-Mobile’s campaign.

Verizon Wireless and T-Mobile have resolved lawsuits accusing each other of misleading consumers through advertising that promised substantial savings from switching cellphone carriers. A stipulation dismissing Verizon’s lawsuit and T-Mobile’s countersuit was filed Friday in Manhattan federal court, more than five months after U.S. District Judge Lewis Kaplan issued a preliminary injunction blocking T-Mobile’s "Save Over $1,000" campaign. Verizon had also alleged that T-Mobile promised more than $3,700 in five-year savings compared with Verizon and AT&T, as well as savings of up to 20% against other major carriers. T-Mobile’s countersuit challenged Verizon’s campaign, which used bug-eyed images of George Washington, Abraham Lincoln and Benjamin Franklin and claimed customers could get a "better deal." Settlement discussions included a possible framework for handling similar advertising disputes in the future. Verizon had 147 million subscribers as of June 30, while T-Mobile had slightly fewer before changing its subscriber-metric disclosures this year.

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