It looks like AT&T thought better of fighting Verizon in court over ads that AT&T itself admitted weren't incorrect. Verizon is also dropping the countersuit according to AllThingsD.
In other fun lawsuit news, Psystar has stopped selling OSX machines, currently listing them as sold out in response to yesterday's news that they had settled their California case with Apple. They are still selling their Rebel EFI (for $0.00 +$49.99 for the authentication key) however, signalling the shift in their business model.