ADT Alleges 200 Vivint Deceived Customers Just 'Tip Of the Iceberg'
How many, if any, Vivint sales reps have deceived customers into thinking they are from ADT? That is at the heart of litigation between the two large rivals.
In recent court filings that IPVM obtained, ADT alleges that they have identified at least 200 victims and further alleges that there are far more to be found, the 'tip of the iceberg' as they describe it. However, Vivint disputed that, triggering a debate about how to prove whether or when customers are victimized door-to-door.
Inside this note, we examine these court filings in-depth, both ADT and Vivint's arguments, and the next steps for this litigation.
Proving ****-**-**** ********* ***** *********
*** ***** ** *** **** ******** from ****** ** **** ** **** trial's ********* ***** *** ** ** April **** ******* ** ****. **** obtained ****+ **** ************* *** **** ***/****** hearing:
ADT **** ~*** ********** **** "*** ** *** *******"
***** *** *** ******** ~*** ********** from ********* ***** *** ******* ********* sales ********* (***), *** ******* *** company **** *** "**** *** *****" because ** ** ****** **** ********* reported ***** ********* ** ******, ****** than ** ***:
**** ***** **** * ******** ** visited ** * ****** ***** ************** and * ***** ** ********** ************** is ****, *** ********, ***, *** not **** ** ** ** ** all ** ***, ** **** ** pick ** ** ** *** **** a *********, ***** ** ** ********* of ****** ******** *** ****** ***** reportsthat *** ****** ** *** ****** ** ***** ***** ********* ******** ** ****** ******* **'* ***** ***** *****. [emphasis added]
*******, *** **** ****** **** ****** to **** **** *** ******* ** the ~*** ***** *** *** ******* identified. **** ****** *** ***** **** were **** ******** ** ****** *** not ** ***:
** ** ** *** **** *** numerous ******** ** **** ******, *** of *** *********** ****** ** **** is **** ****** *** *********** ********* to *** ********* *** **** ****, we'll **** *** ****'* ******* ** us ** ********* *** **** ** the *** ** ** ********* ***'** identified, *** ******* **** ******* *** fact **** ****** ** ****** ** sole *** ********* ********** ** **** of *** ******* **** ***** **** us ********** *** **** ***** ** the *******.
*** ~*** ***** ******** ******** ** ADT ** **** *** "*** ** the *******," *** ****:
*** ********** ***********, **** ** **** the *** ** *** *******, ** something **** ****** ** ************...it's ********* ******** **** *** ****** ** ********** *** *** **************** ** *** ***** ** *** *******. The reason that's relevant to these discovery requests is an application of that theory is (inaudible) do get misled, they *** **** ****** ** ******** ** *** ***** **** ********* *** ******* rather than saying their existing alarm company, ADT. [emphasis added]
******** *** ******** ** **** *** have *** ***** *****, ****** ******* customers *** **** ****** ***** **** complained "******" ** **** ********* ******* these ********* *** ******* ********* ******** worth ********* ** *******:
*** ******** *** ***** ** ***** cases **** ** ******** *** ******* into ********** * ******* *** * long-term ******* ******* ***** ***** **** thousands ** ******* *** *** * monthly ********* *** *** **** **** misled **** ******** **** ****,believe ** **** ******** ****** *** **** ******** ** **** *********. [emphasis added]
ADT ******* ********** ******* ** ************
*** ******* ***** *** *********, ************ compensation-related *********, **** ***** **** ********* whether ****** ************ ********* ***** *********, or ******** **** ********** ** *** power ** **** *** **********. ** the *******, *** ******* **** ** had ****** ** ******* ****** ************ this **** ** **********:
*** ** *** ***** ****** *******is ****** ***** ********** ** *** ***** ** ******* **** **** ** *******, ** ** **, ** *******, *********** *** *******. And in our view records relating to the salespeople's compensation illustrates that in **** **** **** ** ********** ******* ** ************ because they make hundreds of thousands of dollars not only for themselves, but on behalf of the company. And when they do get caught, which in our view is not very often, the punitive measures that Vivint takes are minuscule compared to the compensation. [emphasis added]
****** ****** *** ******* *** *** information ** **** **** ******** ** having ******** * ************** ** ************:
* [*** ****** ********] ********** *** desire ** **** **** ********, *** they're *** ******* **** ****** **** argument. ** *** ***** **** **** spent * ***** **** ** **** examining *** **(*)(*)************** ** ************, *** they **** **** ******* **** ** account -- *** **** ************ **** generates *** * ********.So ****'** *** *** ***********. **** ******* **** *** *********** **** **** *** **** *** ******** **** *****'* * ********* ********* ** ******* *** *******'* ******** *** **********. They're not limited in that. [emphasis added]
****** ******* ****** **** *** ******* is ******** *********** ************ ** ******* "quality ********" ** ***** *** ********* are ***** *** *************** *** *** ADT:
**, *** ****, * [****** ********] obviously **** * ********* ******** ***** isactually ***'** *********** ************ ** ******* ******* ********. If you're misleading people into entering into two alarm accounts, you're not going to be compensated for those. And so, you know, the compliance and chief salespeople have testified, and will testify, that the ********* ********* ** ** ******* **** ********, *** **** *** ********* **** *** *** *** *** **** ***'** *** ***. [emphasis added]
Vivint **** ********
*******, ********* ********* ** ***** ********* might ******** ******* "*******" ********. *** example, ****** **** ********** ****** ***** clear *********** ** ***:
*** ** ****, **** **** ******* testify ****the ******* ***** ** **** *** **** ****** ******'* ******** *** ******** *** **** ***. That is the most successful pitch. No offense to ADT, but its equipment was considered some of the most antiquated in the history for years and years and years. [emphasis added]
Discipline ****** *************
*** ** **** ****** *** ****** to **** **** ********* ******* ** whether *** *** ***** **** **** disciplined *** ******** ** ********* ***** conduct. *** **** ****** ** ******** whether ****** *** ******* *********** **** had **** ***** *** ****. *** says ****** ***** ********* **** **** whether ****** ** ****** ********** *********:
*** ** ******* ****'* ********** *********, again ** **** ******* **** **** of ******* ** ********** ******** ** if **'* ********* **** **** **** passing *********.
*******, ****** ****** *** *********** ***** documents *** ********* **** **** *********** is ********** ******* ** ******** ******'* legal **********'* ****** ** *** ******** care **********. *** ***** ******* *** spreadsheet *** **** ********** *** *** but **** ** ************ *** ******* it *** **** ********** ***** ** the ****.
Disagreement ** ********** ********
****** *** *** ******** ** **** evidence ** **********, *** *** ****** of ***** ********* ***** *********, ** person, ***** ** ********* ** ******* evidence. ****** ******* ****** **** *** only ********** ******** ** *****-****** ********* from *** ****** **** *** ******** in *** *********** **** *** ***** rep:
** ** ** **** *** **** down, **** **'**, ** *******, **** with ********* *** ********** ******** **what **** ***** ** *** **** ** **** ********'* ********* ******* ** *****-***********. [emphasis added]
*******, ** ** ***** *** **** not *** *****-****** ********* ** *** only ********** ********. *** *******, ** 2017, *** *******, ** ********, * spreadsheet **** *********** ** ******** *** complaints (*.*. ****, ****, *** * summary ** *** *****). *******, *** had ***** ** *** ******* ** the ****** *** *** *** ****** encounter **** *** ***** *** *** deposition. ****** ********* *** ********* **** taking *******' ***********, ****** ** "******** reliability *****" ******:
*'** [****** ********] **** ******** ** these ******** *****. ******** ********* * deposition *** **** *******, ** ** to **** ********** *** **** *** that ** **** **'** ******** *** spouse ** *** ****** *** ******** had *** *********** **** *** ***** rep.The ****** ****'* ******** *****, *** **** **** *** *********** ***** ** *** *** ** ****'* *** ********** *** ******* **. And I don't say that to be critical of ADT, I'm just illustrating for the Court why ****** *** **** ******** *** ********** ******** ** ** ******* *** ** ********* ******** ********* of what took place on the door. [emphasis added]
*** *** ***** **** ****** **** is "**********" ** * ***** ********, however, ** ** ***** **** ******* on *****-****** ********* ***** *** ** difficult. ***** ************* ********* ****** ** a ****** ** ******* ******* ***** recorded, ** ********* ****** *** *** be **** ******** *** *********** **** the ***** *** ******** ****.
Judge ********* ****** *********, ************* ** ** ******* ** *****
*** ***** ********* ******* ***'* ********* requests, ******** ** ********* **** *** discovered ********* *** *** ********** ** admissible. ** *** ******* *** ****** to *****, **** **** ******** ************* specifically (*.*. ******* *** ********** ********* can ******** ** ******** ** ********). However, *** ***** **** ******* *** strictly ** ***************, *** *************:
**** ** ********* *******, *'* ***** to ****** *** ***** ** ****** the *********** ** *********.This ** ** ** *** * ****** ** *************. I am not stating, implying either directly or implicitly, that this ruling relates to trial admissibility. And then later on the parties litigate the admissibility closerto the trial, typically through motions in limine or Daubertmotions. [emphasis added]
Next *****
** **** **, ****, *** *** Vivint ******* ***** ******* ** ****** *** ***** *** pretrial *********** *** **** ***** ***** *** trial ** ***** **, ****. *******, before *** ***** *** ******* **** have ** ******** *****-******* ********* ** February **, **** ** *** ** settle *** ****. *** **** *** expert ********* **** ** ********* ** January **, ****.
**** **** ******** ** ****** *** case *** ****** **** ****** ***********.
Vote / **** ********* ***** *********
ADT ******* ********** ******* ** ************
***** *** ** *** *** *** which *** ** *** ****** ** this *****?
** ***** *** *** ********* *** monitoring **** *******.
"** ***** *** *** ********* *** monitoring **** *******. "
*** **** ** **** **** ***** added ******* **** **** *** ****** sure **** **** ** ********** ***** dried ***** **** ******, *** ******** has * ******** **** ** ***** on.
******,*** ***** ** ****** ****** ***** testimony ** ********** ********** ***********:
*** ************ ******** *** ***** ** permit * ***** ******** ** *** hundreds ** ********* *** **** **** deceived ** ****** ****** *** ******* to ******* ** ***** *** ****/*************** remote ***** ************, ** ************ ******* Rule ** ***** ********* **(*). ****** these *********—**** ** **** *******—** ****** across *** ******* ** **** **** testimony ****** * ****** ******** **** is *** ** ** ********** ***** place * ****, ***** ****** ** individuals **** *** ***-******* ** **** litigation, *** *** **** ******** ** these ********* *** ****-****** *** *** mile ****** ** *** *****’* ***** subpoena *****.
***** ******* **** *** ***** **** practice *** **** ***** ** ***** the **** **'* *** ** ******* new. ***** ***** *** ****** *** sold ********* ** ******* * ***** then ** **** **** *** *** of *** ******** ** *** ********* like ***** ******* ** ******* ******** or *** ********* **** **** **** no ****** **** ** **** ***** type ** ** ***** *****. *** customer *** *** ****** ** **** typically ******** **** **** ****. *** dealer ***** **** **** *** *** change *** ** ********* ******** ** their *** ****** ******* * ** sell *** ******** *****. ****** *** then **** ******* ** $*,*** ** $3,000 ******* * ******** ** * matter ** * *****. **** ****** agreements ****** **** ** *** ****** contract.
**** * ***** ** *** ******* and *** *** ******** **** * actually **** **** ******* * ***** call *** ****** *** ** **** and *** *** ******** **** **** was ***** **. ***** * ****** would ******* *** ******** *** ****** the ******** *** **** *** *** then *** ******** ***** ** ***** with *** ***** *** * *** months. **** ****** * *** ****** off *** **** *** * *** an ****** *******.