ADT settles with three companies in deceptive sales lawsuits for $5.5M

ADT on Friday announced that it has entered into settlement agreements with Alder, its owner, Adam Schanz, and two Monitronics dealers; Alliance Security and Capital Connect, stemming from lawsuits it filed against those three companies and Schanz alleging the use of deceptive sales practices to mislead ADT customers.

Under the agreements, ADT will receive $3 million from Alder, $1.5 million from Alliance Security and $1 million from Capital Connect, and court orders prohibiting each company from engaging in further deceptive sales practices.

“We hope these settlements once again show that ADT greatly believes in protecting its customers from deceptive sales practices,” said P. Gray Finney, ADT’s 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 the aforementioned companies 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 has filed numerous lawsuits against companies who have made false or misleading statements to ADT customers when attempting to solicit their business and obtained court orders prohibiting those companies from further deceptive sales practices, along with monetary relief.