ADT Agrees to Settle Deceptive Sales Lawsuits for $5.5M

ADT reached agreements with three security companies after alleging its customers were being duped by misleading statements and sham sales practices.

BOCA RATON, Fla. — ADT will receive a total of $5.5 million after agreeing to settle lawsuits against three security companies that ADT claims each used deceptive sales practices to dupe its customers.

In a press release, the nation’s largest security provider said it reached settlements with Alder of Orem, Utah, and its owner, Adam Schanz, along with two MONI (formerly Monitronics) dealers, Alliance Security of Cranston, R.I., and Capital Connect of Tucson, Ariz.

The agreements call for ADT to receive $3 million from Alder, $1.5 million from Alliance Security and $1 million from Capital Connect. The settlements also prohibit each company from employing further deceptive sales practices, according to the company.

“We hope these settlements once again show that ADT greatly believes in protecting its customers from deceptive sales practices,” says P. Gray Finney, ADT chief legal officer. “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.

Since 2013, ADT said it has filed numerous lawsuits against companies that have made false or misleading statements to ADT customers when attempting to solicit their business. ADT obtained court orders prohibiting those companies from further deceptive sales practices, in addition to receiving monetary compensation.

ADT’s website includes information for consumers to learn about sales scams in the security industry and to report being victimized.

READ NEXT: How Alarm Companies Can Defend Themselves From Door-Knocking Competitors

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10 Responses to “ADT Agrees to Settle Deceptive Sales Lawsuits for $5.5M”

  1. Trevor says:

    ADT is a bully. They are drunk on their own blood & boost openly & explicity about their history of “scalps”. Whether it’s suing current and past dealers out of business or suing competitors. Adt had perfected the art, they know it & their arrogance might be their only demise. In 2006 I was ADT’s #2 dealer in the country, the purchased over 32k accounts from us. In 2007 they sued us into Ch11 bankruptcy. After PERSONALLY fighting the lawsuit we not only won but “settled” confidentially. All for not. All into the bankruptcy. Reps scattered, lives shattered. Shame on them.

    This lawsuit might have merits due to reps who can be intentionally deceptive and hide things from the company. I personally know lots of the people @ Alder & Adam & they are stand up guys.

  2. That Guy says:

    Trevor it sounds like you are one of the Alder employees. I don’t know how you can justify the crooks against the victim!! The ADT dealers only exist because they lie about being ADT. Joe the alarm guy can’t get the earnings that Joe the authorized dealer can get.. Adt has been around for over 140 years. Their footprint is huge which means they employ lots of families that you stole from. If Alder want’s new customers let them earn them like ADT does.

  3. LtinCypress says:

    Well many years ago, we purchased alarm services through Edison Home Security that was converted to ADT. Service quickly went down hill. The extended protection was a joke.

    I was able to cancel and went with another monitoring solution.

    Fast forward, i purchase a home with an pre installed owned alarm.
    ADT keeps sending me specials and sends a sales person. When i refused to pay a $60 reconnect special in exchange for 2 free months and a 36 month contract, they then tried to tell me if i didnt sign, i would owe them for the alarm system!

  4. rosalie Peoples says:

    I would like to start a class action law suit with ADT Defender for deceptive practices/bait and switch/and forgery. If anyone has experienced this also please contact me at 312-772-0896 so we can possibly put our heads together and get compensated for our hardships that we went through with this dishonest company.

  5. Martha Carroll says:

    Alder is still at it! A guy came by today. I was skeptical. Checked online and saw ADT has sued them and 2 other companies successfully and part of the agreement was Alder would quit making false claims and misleading people. I called ADT to report it. I’d never heard of Alder before. Aggravating for sure!

  6. Kathleen Mack says:

    Hi Roselie, I to am looking for an attorney to represent me regarding ADT and Defender Direct. I’m willing to speak with you further. Please contact me

  7. […] lead to a lawsuit filed by ADT. In 2017, Alder chose to settle out of court and was forced to pay ADT $5.5 million. Today, Alder has a blog on their website instructing people on how to spot a security scam, yet […]

  8. […] lead to a lawsuit filed by ADT. In 2017, Alder chose to settle out of court and was forced to pay ADT $5.5 million. Today, Alder has a blog on their website instructing people on how to spot a security scam, yet […]

  9. Edith Briggs says:

    And they are still at it. My contract was for 2 yrs, ADT said for 3yrs….my contract was for 53 a month ADT charged me more and has yet to refund me. I paid out my contract and they won’t refund my overpayment and calls me every week.

  10. On may 1st I called adt about getting a security system. I spoke with a salesman and told him what i was wanting. I told the that i wanted both doors protected and a doorbell camera and a camera to watch my car’s. The salesman told me that i could get it.so he put over to a manager and the manager told me that he was going to give 1706.00 worth of equipment including the camera’s. The installer came on May 2nd and installed 2 smoke detectors and 1 motion detector and one key pad he gave me 2 key fobs and 1 medical alert button. I asked the installer about the camera’s. He told me that adt no longer carrier’s them. I asked about the one on back he told me that he could put me one up but it would cost me 299.00 that day .when i spoke with the salesman on May 1st the salesman nor the manager told me about the 299.00 activation fee. I do have lawyer she told me to try to work it out with adt and i have. I have been lied to hung up on by mark at defender’s . i talk to my lawyer on june17th.now she is going to get involved. Let’s try to resolve this without going to court.please call me at 828 242 4638. Thank you. Charles Clemons

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