This is partially true, according to E-Commerce Times; Verizon and Palm have been scrapping over contract terms -- which is common. Carriers and device makers often struggle to settle on subsidy rates among other details. Being the largest wireless carrier in the US puts Verizon in a strong bargaining position, and the company isn't afraid to sidestep a deal -- Verizon turned down Apple's iPhone terms when it was first shopping for carriers.
Like TheStreet.com's report, E-Commerce Times has noted that the two companies could be locking horns over their respective application stores. Verizon may want its own VCast Store to back the Pre -- but Palm has its own. Neither company has responded directly to yesterday's rumor.