Verizon and Cablevision Settle Out of Court


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On December 7 we brought you a story that New York cable company Cablevision had filed suit against Verizon over ads accusing Cablevision of delivering just over half its promised data speeds during peak hours. In the ads Verizon said the data came from a “just released” FCC study. Cablevision argued that the information in the ads was outdated and inaccurate, while Verizon protested that they intended to defend against the suit vigorously.

Today, less than two weeks later, the companies have agreed to settle the suit out of court. Though the terms of the agreement are not known, Verizon told the court that the ad campaign had run its course as of December 17, and that Cablevision’s request to have the ads pulled was no longer needed.

These ads were based on a study done by the FCC in March, but not published until August, that showed the data speeds of a number of internet service providers. Though the report did show Cablevision only delivering about 60% of their promised speed during, the company maintained that they had improved their network. A blog post by the FCC agreed, specifically citing Cablevision as a company that had made dramatic improvements in service since their original findings were released. Cablevision and Verizon are the two main internet service providers for New York City.

[Source: Bloomberg]

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