Verizon Sues T-Mobile Over "False" Ad Claims

The long-simmering rivalry between the nation’s two largest wireless carriers has moved from the airwaves to the courtroom. Verizon (VZ.N) filed a federal lawsuit in Manhattan on Wednesday, accusing T-Mobile (TMUS.O) of a coordinated campaign of false advertising designed to deceive consumers and cause "irreparable harm" to Verizon’s brand.

At the heart of the lawsuit is T-Mobile’s aggressive marketing claim that consumers can save more than $1,000 annually by switching to the "Un-carrier." Verizon alleges these numbers aren't just optimistic—they are intentionally misleading.

The "Apples-to-Oranges" Comparison

According to the complaint, T-Mobile’s math only works if you ignore how people actually buy wireless service today. Verizon alleges that T-Mobile:

• Cherry-picks Rates: T-Mobile reportedly compares its temporary promotional "teaser" rates against Verizon’s standard, non-discounted base rates.
• Ignores Bundles: Verizon argues that T-Mobile ignores the massive value of Verizon’s "myPlan" bundles, which include services like Netflix, Disney+, and Max. By leaving these out, T-Mobile allegedly makes their own savings look twice as large as they actually are.
• Inflates "Freebies": The suit claims T-Mobile assigns arbitrary, inflated values to perks like "free" satellite connectivity and travel benefits that many users never use.

A History of Warnings

This isn't just a sudden disagreement. Verizon’s legal team pointed out that T-Mobile has been warned before. The National Advertising Review Board (NARB), the industry’s self-regulatory watchdog, reportedly found nearly identical savings claims to be "unsubstantiated and misleading" during reviews in 2025 and 2026.

Verizon alleges that T-Mobile chose to "double down" on these tactics rather than correct them, leading to the current filing under the federal Lanham Act, which governs trademark and false advertising.

The Stakes of the Wireless War

The timing of the lawsuit comes as the gap between the two giants continues to shrink. As of the most recent financial reports:

• Verizon: 146.9 million subscribers.
• T-Mobile: 139.9 million subscribers.
• AT&T: 120.1 million subscribers.

With T-Mobile rapidly gaining on Verizon's lead, every percentage point of "churn" (customers switching carriers) represents hundreds of millions of dollars in revenue.

What’s Next?

Verizon is seeking triple damages for intentional false advertising and a permanent injunction to force T-Mobile to pull the ads from TV and digital platforms immediately.

While T-Mobile has historically used legal challenges as marketing fuel—often framing themselves as the "disruptor" being bullied by the "incumbent"—the specificity of the NARB's previous findings may make this a much tougher fight for the Bellevue-based carrier.