Verizon and T-Mobile settle mutual advertising lawsuits in the US
In New York, US, mobile operators Verizon Wireless and T-Mobile settled mutual lawsuits in which they accused each other of misleading consumers with advertising about significant savings after switching carriers. As Channel NewsAsia reports, citing Reuters, an agreed filing to dismiss Verizon’s lawsuit and T-Mobile’s counterclaim was submitted in Manhattan federal court on Friday.
Advertising campaign ban
The case was dismissed more than five months after US District Judge Lewis Kaplan granted Verizon’s motion for a preliminary injunction. It blocked T-Mobile’s “Save Over $1,000” advertising campaign.
Verizon sued T-Mobile in February. The company later added claims concerning its competitor’s advertising, which Verizon said misled customers by promising savings of more than $3,700 over five years compared with Verizon and AT&T, as well as up to 20% compared with other major carriers.
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T-Mobile’s counterclaims
In its counterclaim, T-Mobile said that Verizon’s advertising campaign featuring images of George Washington, Abraham Lincoln and Benjamin Franklin also misled consumers. According to T-Mobile, Verizon could not guarantee customers a better offer.
Representatives of Verizon, T-Mobile and their lawyers did not respond to requests for comment. During negotiations, the parties considered creating a mechanism to resolve similar advertising disputes in the future. As of June 30, Verizon had 147 million subscribers, while T-Mobile, before changing the way it disclosed subscriber-base figures this year, reported a slightly smaller number of subscribers.
