U.S. telecom Verizon (VZ) filed a lawsuit against rival T-Mobile (TMUS) over false advertising and for causing irreparable harm with misleading claims of yearly savings of over $1,000 if customers switch carriers, Reuters reported late on Wednesday, citing a complaint filed in Manhattan federal court.
T-Mobile exaggerated the alleged savings, sometimes by more than 100%, by comparing its promotional rates with Verizon’s standard rates and inflating the value of streaming, satellite connectivity, and other benefits that “the other guys leave out,” according to the complaint, which was seen by the news outlet.
Verizon said T-Mobile doubled down on savings claims that were “substantially identical” to claims found unsubstantiated and misleading by the National Advertising Review Board in 2025 and 2026, the report said. The NARB is a five-member panel that reviews advertising cases in the U.S. to ensure genuineness and authenticity.
The alleged deception includes not offering apples-to-apples comparisons of subscriber costs by understating the savings that New York-based Verizon offers when it bundles various services, such as Netflix with HBO Max or Hulu with Disney+ and ESPN+, the report said.
The lawsuit seeks unspecified triple damages for alleged intentional false advertising, damages for violating New York laws against anticompetitive practices, and a halt to the challenged ads.