Verizon Wireless has filed a lawsuit against T-Mobile, accusing its biggest rival of misleading advertising that promises customers more than $1,000 in annual savings for switching carriers. The complaint, filed in Manhattan federal court, alleges that T-Mobile exaggerated potential savings and caused irreparable harm to Verizon’s business and brand.
Verizon alleges exaggerated savings claims
According to the lawsuit, T-Mobile overstated consumer savings in its promotional campaigns by comparing discounted offers with Verizon’s standard rates rather than equivalent plans. Verizon claims the savings figures were sometimes inflated by more than 100 percent, Reuters news report said.
The complaint also accuses T-Mobile of overstating the value of bundled benefits, including streaming services and satellite connectivity, which Verizon says were presented in a way that made competing offers appear less valuable.
Advertising watchdog findings cited
Verizon said T-Mobile continued using savings claims that closely resembled advertising previously reviewed by the National Advertising Review Board. The watchdog reportedly found similar claims in 2025 and 2026 to be unsubstantiated and misleading.
The lawsuit argues that T-Mobile failed to provide “apples-to-apples” comparisons of subscriber costs, especially when Verizon bundles services such as Netflix with HBO Max or Hulu with Disney+ and ESPN+.
Lawsuit seeks damages and ad halt
Verizon is seeking triple damages under the federal Lanham Act for alleged intentional false advertising. The company is also pursuing damages under New York laws covering unfair competition and trade practices. In addition, Verizon is asking the court to stop the contested advertising campaigns.
T-Mobile, headquartered in Bellevue, Washington, did not immediately comment on the lawsuit.
Subscriber competition intensifies
The legal battle comes as competition among US telecom giants continues to intensify. Verizon reported 146.9 million subscribers as of December 31, while T-Mobile had 139.9 million subscribers as of September 30. AT&T Mobility remains the third-largest player with 120.1 million subscribers.