Lawsuit Claims ADT Stole Customers From Dealers

SCOTTSDALE, Ariz. – An alarm contractor is claiming ADT Security Services stole its customers while it was an ADT Authorized Dealer.

First Protection Inc. of Scottsdale, Ariz., has sued ADT, saying the division of Tyco cancelled existing contracts with First Protection customers, re-signed the contracts with the customer directly and then charged First Protection for the cancelled accounts. The suit was filed on Sept. 15 in the Maricopa County, Ariz., Superior Court.

“Coming up with a reason to kick a dealer out saves them a tremendous amount of money,” says First Protection President David Fursman, who referred to the financial troubles of ADT’s parent company Tyco. “It’s not just us. I’ve talked to several companies with similar problems that haven’t been able to prove what they say. We have the proof.”

A spokesperson for ADT declined to comment on the suit, saying the company does not comment on pending litigation. However, ADT filed a motion with the court on Nov. 6 to dismiss the lawsuit because it says Maricopa County doesn’t have jurisdiction over the contract. ADT says the contract was executed in Arapahoe County, Colo.

Fursman says he didn’t know the contracts had been broken until collection companies alerted him about customers who had not paid him for service. “A lot of the customers were saying they were paying ADT. When you go back and research every single account, you can find a pattern,” says Fursman.

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