ADT settles with three security companies for $5.5m in deceptive sales lawsuits

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Wednesday, August 2, 2017

BOCA RATON, Fla.—ADT on July 28 announced settlements with Alder, its owner, Adam Schanz, and two MONI dealers—Alliance Security and Capital Connect—as part of lawsuits against those three companies and Schanz alleging the use of deceptive sales practices to mislead ADT customers.

The agreements call for ADT to receive $3 million from Alder, $1.5 million from Alliance Security and $1 million from Capital Connect, for a total of $5.5 million and court orders prohibiting each company from further deceptive sales practices.

“We hope these settlements once again show that ADT greatly believes in protecting its customers from deceptive sales practices,” P. Gray Finney, ADT chief legal officer, said in the announcement. “ADT will continue to pursue companies and their sales representatives who misrepresent themselves to deceive its customers.”

The settlements stem from two lawsuits in which ADT claimed sales representatives from Alder, Alliance Security and Capital Connect misled ADT customers into believing their companies were affiliated with ADT, or their alarm systems required upgrading. The lawsuits were filed after hundreds of ADT customers complained about the deceptive sales practices of these three companies, according to ADT.

Since 2013, ADT has filed numerous lawsuits against companies who have made false or misleading statements to ADT customers when attempting to solicit their business and obtained court orders prohibiting those companies from further deceptive sales practices, along with monetary relief.