ESPN sues Verizon for breach of contract

ESPN is suing Verizon in an escalating clash over how the popular sports channel is being sold in a discounted pay-TV package.

Filed monday in New York's state Supreme Court, the complaint alleges Verizon is breaching its contract with ESPN by unbundling it from its main program lineup for its FiOS TV service.

Under a new subscription plan, Verizon is allowing customers to pay $55 per month for a 35-channel package, with the option of adding two other tiers of programming such as a sports package that includes ESPN.

ESPN - owned by Walt Disney Co. - argues its contract with Verizon requires the channel to be included in its main programming packages, according to The Associated Press.

Read more from The Associated Press.