Settlement Talks Elusive in AT&T’s False Ad Complaint vs. T-Mobile

AT&T and T-Mobile don't believe “that substantive settlement discussions would be productive” on AT&T’s Sept. 6 complaint alleging T-Mobile’s BannedSeniors.com ad and marketing campaign is rife with falsehoods, in violation of the Lanham Act, said the two sides in a joint rule 26(f) report Tuesday (docket 4:22-cv-00760) in U.S. District Court for Eastern Texas in Sherman. “As a result, no formal settlement demands or offers have been exchanged,” they said.

AT&T’s complaint alleges that multiple claims in T-Mobile’s campaign are “literally false,” said the report. AT&T maintains it’s not true it bans senior wireless discounts, or that 92% of seniors in the U.S. can’t get a wireless discount from AT&T, it said. Also untrue, according to AT&T, is T-Mobile’s claim seniors outside Florida can’t get a wireless discount from AT&T, or the only ways for seniors to get a wireless discount are to switch to T-Mobile, move to Florida or get a virtual mailbox in Florida, it said.

AT&T contends T-Mobile’s campaign has caused it harm by persuading consumers to choose wireless service with T-Mobile instead of AT&T “based on false and misleading claims,” said the report. AT&T seeks a preliminary injunction to halt the campaign, plus monetary damages and permanent injunctive relief, it said.

T-Mobile disputes AT&T’s contentions the challenged statements are “literally false,” it said. It also disputes the contention T-Mobile’s campaign “has caused and continues to cause harm to AT&T,” it said. T-Mobile also says Texas is the wrong jurisdiction for the lawsuit and filed a motion to dismiss based on the jurisdictional questions. "This motion is fully briefed and remains pending," said the report.

The parties’ proposed schedule would complete discovery by May 16, said the report. A final pretrial conference would be held Dec. 7, 2023, with a seven-day trial to follow at an unspecified date, it said. They do not consent to a trial before a magistrate judge, the report said. AT&T and T-Mobile “are in the process of discussing potential mediators and anticipate that they will be able to agree” on one, it said. They propose a June 1 mediation deadline.

AT&T expects to depose Clint Patterson, T-Mobile senior vice president-public relations and employee communications, plus other employees in T-Mobile’s marketing and advertising groups, said the report. T-Mobile plans to depose a corporate representative of AT&T Vice President-Wireless Marketing Mitch Farber, plus employees in AT&T’s marketing and advertising groups, including staff with knowledge about AT&T’s 55+ marketing plans, it said.