Verizon Sues T-Mobile Over $1,000 Savings Claims, Alleges Misleading Ads Despite Prior Regulatory Warnings - Walt Disney (NYSE:DIS), Netflix (NASDAQ:NFLX)

"On Wednesday, Verizon Communications Inc. (NYSE:VZ) filed a federal lawsuit accusing T-Mobile U.S. (NASDAQ:TMUS) of misleading consumers with exaggerated claims that customers can save more than $1,000 a year by switching wireless carriers. Verizon Accuses T-Mobile Of False Advertising Verizon sued T-Mobile in Manhattan federal court, alleging its largest rival engaged in false advertising that caused irreparable harm by overstating potential consumer savings, reported Reuters."

"According to the complaint, T-Mobile's marketing campaigns promised annual savings exceeding $1,000, claims Verizon says were exaggerated and, in some cases, inflated by more than 100%. Claims Previously Flagged By Advertising Watchdog The lawsuit says T-Mobile continued to promote savings claims that are "substantially identical" to advertising assertions the National Advertising Review Board found unsubstantiated and misleading in 2025 and 2026."

"The legal action comes as Verizon reported fourth-quarter result s and issued positive 2026 guidance. The company posted revenue of $36.40 billion, up 2% year over year, beating analyst expectations. Adjusted earnings per share of $1.09 also topped estimates. Verizon added 616,000 postpaid phone subscribers during the quarter, its strongest performance since 2019."

Verizon filed a federal lawsuit in Manhattan alleging that T-Mobile misled consumers with advertising claiming customers could save more than $1,000 a year by switching carriers. The complaint states some savings claims were exaggerated and, in some cases, inflated by more than 100%. The lawsuit asserts T-Mobile continued to promote claims similar to those the National Advertising Review Board found unsubstantiated and misleading in 2025 and 2026. Verizon seeks unspecified triple damages under the federal Lanham Act, additional damages under New York law, and asks the court to block the challenged advertisements. The filing follows strong Verizon quarterly results and subscriber growth.

Read at Benzinga