Al Jazeera America filed a case against AT&T for unfairly terminating their Affiliation Agreement. In its complaint, Al Jazeera accused the telecommunications provider of carrying out a "bad faith scheme." Highlighting AT&T's subscriber base, Al Jazeera said, "AT&T has a large subscriber base in Texas and other conservative states in the South and Southwest. Upon information and belief, it then began to cast around for an excuse to unilaterally terminate the Affiliation Agreement."

AT&T's pay-TV service, U-verse, did not carry Al Jazeera America since it launched on Tuesday. AT&T Spokesman Mark Siegel, however, said they did not carry the cable network because of a contract dispute. In an email sent to Reuters, Siegel wrote, "Al Jazeera has mischaracterized the facts. Due to certain breaches by Al Jazeera, AT&T terminated the agreement and will no longer carry Current TV on U-Verse."

Al Jazeera wants the court to declare AT&T to have materially breached the Affiliation Agreement. The cable network wants AT&T to pay compensatory damages and honor the said contract.