Vivint Settles ADT Deceptive Sales Suit
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.
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
- Vivint And ADT Are Going To Trial
- Vivint Countersues ADT Claiming ADT Sales Reps Trick Vivint Customers
- NRG / Vivint Q1 2023 Financials Analyzed
- Vivint and CPI Contest Over Testimony of CEOs
- Jury Orders Vivint To Pay $190 Million Damages To CPI
- 17 Alarm Company Lawsuits Against Competitors Faking Them
Events ******* ** ** *** ******
*** ****** ********* ** ** **** Vivint *** *** *** *****, ***, were *********** ***** *** ******* ** a ***** ** ***** ** *** judge's **** ****** ****** ** ******** in *** ****. *******, ******* ***** has ********* ******** *** ** ******** to ****'* ******* *** *******.
*** ********* ******* *** ********** ****** a ********* ******* ** *** **, 2023, ********* ** *** ***** ******. Just * *** **** *******, * judge ***** ** ******** ******* ** which ****** ****** ** ******* * list ** ******** ** ******** **********, references ** **** ***** *** ********** cases ********* *** *******, *** ********* from *** ******* ** *******.
** *** ******,********** ***** ******** ******* ********* ********* 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 ** ***** *****.
******* ****** *** *** ********* *** 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 ******:
** **** ****** *** ***** ***** on ** *** ********, ***** ****** heard ****** ********* ***** *************.
** ********* ** *** *** *****, 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 *********.
**** *** *** ***** ** ******* completely *** *** ** ****** *********. Maybe *** **** *** **** ** as **** *** ****** *** **** could ******.
****’** ******* ***** * *** ***** since *** ****** ****** **** **** off. **** ** *** *** **** bought *** **** ******** *****.
**’* *** **** *** ******** **** as ** ****** *** ****.
**** **** *** *** **** ** quality **** ********.
*** ** ******** ****** *** * regulated *******. ****'* ********** ********* **** private ****** ********* *** **** ***** companies *********.
***** ****** **** ** ******* ****** things *** *** *** * *** more ** **** ***** *** **** are **** * ** ****.
****** **** **** *** ****** ** Jesus ****** ** ****** *** ****** (Mormon) *** ***** ***** ****** ** any ** **'* **********. ** *** owned ** ******* *** *** **** been * ******, *** *** ****** itself *** *** **** ***** **.
**** ***’* **** ******. ******* **** has *** ******* **** ****. **** learned **** *** **** **’* *** a ******* ****. **** ** **** systems ** *** *** *** ***** about *** ******* **** ** *****. Make ****** ***** ** ***** *** lawsuits *** **** **** ***** **** your *****.
***** * ****** ***** ** ***** finds * *** ** **** **** down **** ***’* **** ***.
**** ** **** **’** ******* ***** a ******* *** ******* ***** **** multiple *****, **** ***** ***** ***** troubles, ** ***** ***** **** **** altogether.