TELUS Shaw Communications has suspended its $1-million lawsuit against rival Internet provider TELUS.

Calgary-based Shaw announced Monday it was pursuing good-faith negotiations to resolve the outstanding dispute over what it claimed was misleading advertising by TELUS.

In view of these negotiations, Shaw has agreed to suspend its lawsuit and its application for an injunction against TELUS, the company said in a statement. The bone of contention in the lawsuit was a TELUS marketing campaign that boasted its digital subscriber service was faster than cable and “never shared.”

Shaw sought a temporary injunction to stop the B.C.-based telecom from making the claims in an effort to woo potential or existing Shaw subscribers.

But on December 7, Justice Rosemary Nation declined the request, and the two parties were due back in court on Thursday, when Shaw was to seek a permanent injunction.

Simon Vincent, vice-president of marketing for Telus Consumer Solutions, said at the time: “We’re very pleased . . . the judge did not feel there was sufficient evidence to give them (Shaw) what they were asking for.”

Shaw Communications president Peter Bissonette said his company took issue with the Telus ads, which state their ADSL service “is never shared, unlike cable, so you always get the speed you expect.”

Bissonette said: “We’re alleging their advertising campaign . . . is false, deceptive and misleading, because they are a shared network also.”