Vivint to pay ADT $10 million in deceptive sales lawsuit settlement

Friday, January 5, 2018

BOCA RATON, Fla.—ADT yesterday announced that Vivint would pay the company $10 million to settle a deceptive sales lawsuit filed in April 2017, ADT’s largest deceptive sales settlement to date.

“ADT filed its lawsuit against Vivint on April 4, 2017 in the U.S. District Court for the Southern District of Florida after receiving complaints from nearly a thousand ADT customers who stated Vivint made false or misleading statements to switch their security service from ADT to Vivint,” the announcement read.

“ADT is a brand trusted five times more than any other security company. When others misuse that trust to prey on innocent consumers, it is despicable. We hope these  lawsuits and ensuing settlements send a strong and clear message that deceptive sales practices must end,” P. Gray Finney, ADT’s chief legal officer, said in a prepared statement. “Not only does it harm our customers, it also harms the value of having a trained security professional in the home, which is how most reputable security companies operate their businesses.”

This development comes after ADT reached settlements totaling $5.5 million dollars stemming from deceptive sales lawsuits, announced in July 2017, against Utah-based Alder, Alder’s owner Adam Schanz, and two Monitronics dealers—Alliance Security and Capital Connect.

“ADT will continue to protect its customers and will pursue legal action against companies that choose to misrepresent themselves to deceive those customers,” Finney said in the announcement.

ADT in 2017 participated in a press conference—along with ESA, TMA and the Better Business Bureau—that addressed deceptive sales practices and how it harms customers as well as the industry.