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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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3 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!

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