CPI Security wins lawsuit against Vivint Smart Home for deceptive sales practices

CHARLOTTE, N.C. – Judgment was rendered on Feb. 17 as a jury awarded CPI Security more than $189 million in damages in a deceptive sales practice lawsuit against Vivint Smart Home.

Originally filed in 2020, the lawsuit went to court early in 2022 accusing Vivint of “false and deceptive sales practices on the doorsteps and in the homes of significant numbers of CPI customers across the Southeast” in an effort to take over their alarm systems.

“While we’re thrilled the trial ended in our favor, I want to be clear that this case is not just about CPI’s business,” CPI Security CEO and Founder Ken Gill said in a statement issued by the company. “We believe that for at least 15 years, Vivint has been taking advantage of vulnerable people across the country through deceptive, misleading, and flat-out false practices. I hope today’s verdict will stop their deception for good.” 

The lawsuit accused the Utah-based Vivint of using false or misleading information to acquire CPI’s customers and lock them into high-priced, multi-year finance and monitoring contracts with them.

Security Systems News reached out to Vivint Smart Home for comment on the judgment rendered in the lawsuit and received the following reply: “We are extremely disappointed with the jury’s decision, which we believe is not legally or factually supported. Furthermore, the amount of damages awarded are egregious and completely disconnected from the total economic impact of any activity that CPI claims to have occurred with respect to this matter. We intend to file an appeal, pursue all legal options available to us and continue to defend ourselves vigorously.”  

Vivint added, “We remain committed to operating with the highest standards of integrity and delivering exceptional service to customers.” 

Vivint has been under fire from multiple sources recently with Alarm.com filing their own lawsuit against the company earlier this year for patent infringement against Vivint claiming the company’s success has been due to the use of Alarm.com’s trade secrets and patented technology. Vivint agreed to a settlement of $10 million in 2018 for similar claims made by ADT, and The Department of Justice fined Vivint $3.2 million in 2021 for making false statement to customers. 

Vivint delivers an integrated smart home system with in-home consultation, professional installation and support delivered by its Smart Home Pros, as well as 24/7 customer care and monitoring, serving more than 1.7 million customers. 

CPI Security, based in Charlotte where the trial took place, has been a provider of customized security and home automation solutions for more than 25 years. It is the largest privately led security provider in the Southeast, licensed in North Carolina, South Carolina, Tennessee, Georgia, Virginia, Maryland, Alabama, and Florida.