Vivint Settles ADT Deceptive Sales Suit

Published Sep 06, 2023 15:32 PM

After a judge made key rulings for an impending trial, Vivint quietly settled ADT's lawsuit accusing it of stealing customers through deceptive sales practices, a practice that earlier this year resulted in a $190 million judgment against Vivint to CPI.

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In this post, we examine legal developments that led up to the settlement, information available about the accord, and how it impacts the security companies and Vivint's new parent, NRG Energy.

Background

Events ******* ** ** *** ******

*** ****** ********* ** ** **** Vivint *** *** *** *****, ***, were *********** ***** *** ******* ** a ***** ** ***** ** *** judge's **** ****** ****** ** ******** in *** ****. *******, ******* ***** has ********* ******** *** ** ******** to ****'* ******* *** *******.

*** ********* ******* *** ********** ****** a ********* ******* ** *** **, 2023, ********* ** *** ***** ******. Just * *** **** *******, * judge ***** ** ******** ******* ** which ****** ****** ** ******* * list ** ******** ** ******** **********, references ** **** ***** *** ********** cases ********* *** *******, *** ********* from *** ******* ** *******.

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** *** ******,********** ***** ******** ******* ********* ********* from *** **** ********** ********* **************** *****. ***** *** ******** ** ***** that ****** ***** ** ****** *** $27 ******* ** ******* *** "********** advertising." *** ******* *** ***** ** an ********** **** ****** ***** **** to ** ****-**-**** ** ***,*** *** customers, ***** ***** *** ** $** in ****** *** *********** ******** ($** million / ***,***).

*** ********* *** **** ****** ** an ****** ** ******* ** *** CPI *****. *** ******* ** *** opinion ** **** ****, ********* *** damages ********, **** *** **** ****** and ****** ***** ****. * ****** for *** ********** ***** ****** ** award $** ******* ** ************ ******* and $*** ******* ** ******** ******* based ** *** ******** ** ******** experts.

*** ***** ******* ******'* **** ********** history ** ** ******* ** ** ADT **** *****-********* ********** ** *** company. ********* ******** ********** *** ******* ********, although *** ***** ********* ** ***** allow *** ** **** ****** *** number ** ********** ** *** **** to ****** ****** ****** ** **** the ********* *********.

***'* *********** ***** *** ********** **********, and *** ******* ******* **** ******'* own ******* *** **** ********* ****. In *** ******, *** ***** ****:

************, *** *****partially ****** the motion in limine and excludes the Customer Complaints for purposes of the truth of the complaints. ADT’s announced plan to introduce the complaints to prove ****** (and Vivint’s alleged failure to do anything in response) will, if objected to at trial, be the subject of an in-trial ******. [Emphasis Added.]

** *********:

*** ******** ** ************* *** ****** of ********** ******** ** ******, *** Court **** **** ******* ****** *** trial, ******** ** ********* ** ******. It *** **** ** **** *** chart ****** (** * ******* ** it)might ** ********** ******* ********* *** ******* ****. For example, aredacted ******* ** *** *********** (with the customer comments section redacted) might ** * ******** ********. [Emphasis Added.]

No ****** *******

****** *********** ** ************** ** **** *, ****, **** not ********* *** ****** ***** **** stating **** ******* **** **** *** own ***** *****. **** ***** ******** their *** ***** ******** ** *** an ********* ** *** ***** ** small *** ********** *** ** *** paid ****.

*** *********** ********* *** **** ***** be ********* "**** *********," ******* ** cannot ** ***** *****.

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******* ****** *** *** ********* *** settlement ** **** *** ******* ******. Representatives *** ***** ******* *** ****** did *** ***** ** ******** ******** from **** *** *******. * ****** for *** ******** ** *******. ** will ****** **** ****** **/**** ***** details ****** *********.

Post-Acquisition *************

**** *** **** ** *** *** case ******** *** $*** ******* ******* against ******, *** ****** *** ** the ******* ** ******* *** $*.* billion **** ** *** ******** *******.********* ** ******** ****, *** **** ********* * **** of **% ** ***'* ***** *****, costing ** $*.* ******* ** ****** capitalization.

******* ******** *****, *** *** **** ****** criticism **** ******** ******** ******* **********, who *********** ****** ***********"*** ****** ***** **** ** *** power *** ********* ****** ** *** past ******".

******** *** ***** **** *** *** mention ******'* ***** *********** ** ****** **** ******,*** ***** ******* ** *********** ***** over ******'* ********.

** *** *******'***** ****** **-* [*** **** **]******** ** ***** ****, ****** ********* that *** $***.* ******* *******, ******** of $**.* ******* ** ************ ******* and $*** ******* ** ******** *******, would ** ******* ** ****** ** as ****** ** $**.* *******.

***** ******* ******** *** ***** ******* on ******, *** *** *******'* ******** is **********. *** ******* **** **** no ******* ** *** *** ****.

Vivint ***** *******

****** *** ********** ***** ***** ******* from ***** ********* *******, *** ******* Trade **********, ***** ********** ********, *** other ****** **** ****** ** ********* or ********* *********. ***** ** *** most ****** *** ****, ********** * $** ******* ************** ****** ** **** **** ********* solicitation.

****** *** **** ******* ********** **** attorneys ******* ********************* *********** ** ********** ********* ** door-to-door *****. ** ****, ****** **** agreed ** *** $** ******* ** the ***** ****** ****** **** ** ****** "hundreds ** *********" ** ********** ********* *** ***** ********* *** qualify *** ******* ********* ** ******** identities.

** ******** ** ***** **** **** claims ** ********* *****, ****** *** also ******* ***** ********* ** *** same *******. *********** * **** ******* *** ** 2021, ******** *** **** ** ************* Vivint ******* *************** ******'* ********.

Other ******* ****

** ***** *** ********** ********** ** still ***** ****** **** ****** ** deceptive *****. *****, ********-********** ******** ********** ***** **** *** ******* ****** sales *************** **** ****-**-**** *** "*************** converted *** ********** ** ****** ********* by ******* ************ **** ****** ** somehow ********** **** ***** ***," ********* to ******* ****** ******.

****** ***** ************* ******** ***** *** has **** "******** ** * ******** to ****** ******’* **********, ********, *** business ************* **, ***** ***** ******, disseminating *****, ***********, *** ******** *********** about ******, ** ******** ********* **** Vivint, *** ** *********** **** ******’* contractual *** ***** ************ ******** *************."

********** ** ***** ******* ** *** case.

Factor ** *** *** *******

**** *********** ******* *** *********** *** have **** * ************* *** ****** in *** *** **** ** ******** 2023, **** **** ******* *** $*** million ********.

** ******** *** ***, ******* ***** of***** ***** & ***** ***,********** ********** *** ***** ******* ** evidence ********* ******* *** "***********" ** closing *********. ***** **** *********** ***, and ******* **** *** **** ********* Alert ***.

********* ** * ********** ** *** proceedings ******** ** ****, ***** **** CPI ******:

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** **** ****** *** ***** ***** on ** *** ********, ***** ****** heard ****** ********* ***** *************.

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** ********* ** *** *** *****, Vivint's ********** ******* *** *** ********* to ********* *** ******* ** ****.

Impacts ** **********

******** ***** ** ******** ** *** best ******** ** ****** *** ***, regardless ** *** ****** ** *** settlement. ***** *** ************ ** *** ADT *** *** *** ***** *** similarities ** *** ******** **** ***** be ********* ** *** ******, *** likelihood ** ******* ************-****** ******* *** high. *** ****** ************ ****** ** the **********, *******, ***** **** **** to ******.

NRG ******

*** ***** ******* ******** ** ****, given ***** *****, *** *** *** ownership ** ****** ********* ***, **** Vivint **** ***** *********? ** *** one ****, ******** **** **** ****** the **** ** ***** ****** ********. On *** ***** ****, *** **** these ********* **** ****** ******'* ******, and *** **** ****** ***** **** from ******** **** *** ********* ****-**** competitive *********.

Comments (5)
UI
Undisclosed Integrator #1
Sep 08, 2023

**** ***’* **** ******. ******* **** has *** ******* **** ****. **** learned **** *** **** **’* *** a ******* ****. **** ** **** systems ** *** *** *** ***** about *** ******* **** ** *****. Make ****** ***** ** ***** *** lawsuits *** **** **** ***** **** your *****.

***** * ****** ***** ** ***** finds * *** ** **** **** down **** ***’* **** ***.

**** ** **** **’** ******* ***** a ******* *** ******* ***** **** multiple *****, **** ***** ***** ***** troubles, ** ***** ***** **** **** altogether.

JH
John Honovich
Sep 08, 2023
IPVM

**** *** *** ***** ** ******* completely *** *** ** ****** *********. Maybe *** **** *** **** ** as **** *** ****** *** **** could ******.

UI
Undisclosed Integrator #1
Sep 08, 2023

****’** ******* ***** * *** ***** since *** ****** ****** **** **** off. **** ** *** *** **** bought *** **** ******** *****.

**’* *** **** *** ******** **** as ** ****** *** ****.

**** **** *** *** **** ** quality **** ********.

(1)
JH
John Honovich
Sep 08, 2023
IPVM

*** ** ******** ****** *** * regulated *******. ****'* ********** ********* **** private ****** ********* *** **** ***** companies *********.

***** ****** **** ** ******* ****** things *** *** *** * *** more ** **** ***** *** **** are **** * ** ****.

Avatar
Salvador Gutierrez
Sep 15, 2023

****** **** **** *** ****** ** Jesus ****** ** ****** *** ****** (Mormon) *** ***** ***** ****** ** any ** **'* **********. ** *** owned ** ******* *** *** **** been * ******, *** *** ****** itself *** *** **** ***** **.