Bribes Alleged, Nortek Sued For Antritrust Violation
A case of an unhappy distributor rival or did a manufacturer accept bribes?
Nortek Security and Control has been sued by distributor Security Data Supply (SDS), alleging antitrust violations and violations of state laws governing fair trade for sales of 2GIG products. Also named in the complaint are competitor Wave Electronics and former Nortek employee Earnest Bernard [link no longer available].
In this note, we examine the case, who is involved, what they claim, what they want and what the defendants' response is.
Key ********
*** ******* **** ****** ******, *** a ****** ***********, ** **** ****** and ******* ******* **********:
- *** ** ***** *** ~$** *******, treble *** ******* **** *****
- *** * ********** ****** *** ***********, claiming *** ******'* *******
- *** ** *** **********, *** **********, does *** **** ********* ******, *** does *** ** *** "**** * salesman"
Distribution *******
*** **** ** **** **** ** whether **** ** ****** ************ ***** distributors ** ******* **** *** ****** have ********* ******* ***** ************.
***** ****** ***** **** ***-*******, * 2017****** ********** ******* ** ***********:
** *** ***** ****, **** **** not ***** ****** ** **** ****.
Overview ** ****
***'********* ************** ** **** ** ****-***** **********:
*** *************** ******* ********* ********, * ********** ** ***, ** undercut *********** **** ***. *** **** claims **** *** **** ** ******** a "**** ****" ****-****** ****** ******* exclusively ** ****.
*** ********* **** *** ** *** of ****'* ******* ****** **** **** able ** ******* *** * ****-****** program, *** **** *** ********** ******* Bernard *** **** ******* *** *********** to **** *******’ ****** ******** ** one ****** *** ******* **** ****** equipment ** ****** *** "**% ****" than *** ***** *** ** ********* from ******.
** **** **...
*******, ***, **** ********* *** ***** variance, ***** **** **** *********** ****** 2GIG ******** ** *** ***** **** sold **** ***, ********* ******** *****:
***** ************** ** ******* ** *** **** of **** ********, ******* ****** ******** **** ** ********* *** ******* from ****'* ****** ******* **** *****.
**’* ******* ******* ** *** ******* was ***** ** ******** ***** *** complaint ****** **** ** *** ********* spots.
******
*** ** *** ******* **********, *** claims ** **** **** ** ******* to **** ******* **** ****** $** million * ****.
Questions ** ******
[**** ** ****** *********]
*** ** *** **** **** ******* any ********* **** *** ***** ***** buy **** *********** **** ***, ***.? Why ***** ****** **** ** ****** with ****, ***********? **** ***** **** stand ** ****? ** ***** *** a ********** ** *****, *** ** the **** ** *** ***, ******* Bernard [**** ** ****** *********]? ** was ****** ***** ** **** **’* sales *** ******* *** ********* *****? Was *******, ** *** *** ********* alleges, *** "******" *** *** ********, collecting ***** ***-****** *****?
Nortek ****** *****, ****** ***
**** ******** *** ********* ******** **** the ******* ****, ********* *********** ** recorded ***** ************* **** ****** **** as * ****-**** ******.
* ********** ** * ************ ******* SDS ********* *** ********* *** *******'* replacement, ****** ******** ***** ******* **** Donahue [**** ** ****** *********], ********* *, ****** ** ***** ** ********** by ******:
******* *** ***** **** ****** *** gone ** *******, ********* ** *** LinkedIn ******* [**** ** ****** *********].
Rival ************ **** ******** *******
******* ************ (******* *) ******* *** ******** ******** *** Mike ***** [**** ** ****** *********], Tyco ******** ******** ********* ***** *******, says **** ***** ******** **** **** from **** ** ******* *** ******. The ******** **** ** *****, ** fact, **** *** ****** *** ********* able ** **** * *** ***** he'd **** ***** **** $**,*** ***** of ** *********.
***** ***** ** * **********,***** ****:
Rebuttal - *** ****** ** *** ***********
**** **** ******** *** ********* **** the ***** **********, *** ** **** moved ** ******* *** ****.
**********'* ******:
****** *** **** ******* **** *** can't ******* *** ** *** ************ but **** **** *** ***** ********* is ******* **** **** * ******** story ** ******** ******** ** ****** a ********** *** ********** ********** ** the ****-****** *** ******** ************ *****.
*** *********, *********** *** ****** ** *******.
******* ***** ** ******* ******* ** lives ** **** ***** ***** *** doesn’t **** ***** *** ************ ** Louisiana. ** **** ******* **** ** simply * ***** ***, ** ****’* culpable ***** *** ***. ***********’* ******:
*******, * *********** ****** "** *** not ****** ** *** "*****", ** least *** *** ********-****** *** ******* it:
*******, **** ***** ** *******, ******** there *** *** ********** ******** ** support *** ******. **** ******* **** because ***' ********* ** ***********, ** means *** **** ** * **** one. ********’* ****** ** *******:
'Kickback' ******* **** ****
** ** *********** (*** **** **** a ****** *****) ** **** **** while **** ******* ** *** **** nothing *****, *** ******** **** ** its ****** ******* *** ******* ** 'Kickback':
*** ** **** ********* ** **** feel ***********, ****** ** ** ****** or ********* *****:
No ********
***** **** ******** ********* ******* **** the ***** *******, ** ******** ** formal ******* ******** **** *** *******. IPVM ******* *** ** *** ********* Ron ********* *** **** ** ***** not ******* ** ******* ********** *** referred ** ** ******** ***** ******** [link ** ****** *********] *********** ****** ***** & *****, ***, ******* *** *** *********. ******** said ** ***** ******* ** *** record ***** ********* *** *******. **** also ****** ***** **** ****** *** left * ********* *** ****** *** and ******* ******* *** ******. ** deadline **** ******** *** *** **** returned. ** ***** ** **** ******* comment ******** ** **** ************* **** that ***********’* ********* ******* **** **********, who **** ** *** ****** ** discuss *** **** *** ******* **** involved **. ****** ** ******, ******* Bernard's ******* ********, *** * ******** request/message ** ******* *******, **** **** unreturned.
Concerns ***** ****
*** ** *** *** **** *********** with ******** ***** ****. **** ****************'* ************* ** ****:
*** **** **** ** **** ** mainly *******. ** ****** ****** ******* with **** ******** ****. ********** * way ** ******* **** **** *** selling ***** *** ****
*******, *****'* **** **** ****** **** improved ***** *** ******* *** *****, noting:
**********, **** ******* ****** ************ ******* to **** **** **** **** **** implemented *** *** *******.
** *** **** ******, * **** sales *******, ** ******* *, *** a ******** **** ** ****:
Court **** **********
*** **** ** *********** ** ***** court ***, ** **** **** ** settlement ** *** *******, ** ****** a ***** ** ***** ** ****. IPVM **** ****** ** **** **********.
Vote / ****
***** ***, ****. ******* ******* ** hearing ********'* *********** ** *** ********* discussion.
*** ** *** ******* **********, *** claims ** **** **** ** ******* to **** ******* **** ****** $** million * ****.
***** **** ****** ***** ***** ** hell ** **, * **** ***** with *** *** *** ** ******** damages.
****** "****" * ******** ************. **** certainly **** ** ***** **** ***** years ***** ** ******** ************* (**** assuming ****'** *** ***** ** **** steady **** *** **** ***** *****, which * **** ********).
***** *******. ***** *** ********** ************ treatment ***** ** ****. ********, * still ***** ***** **.
* ***** **** ** **** **** any ***** **** ************ ** ****.
**** **** ******* ****** ** *** door ** **** ******. * **** friends *** ******** ********* ** ****** from **** **** **** *** **** of ********* ** *******. *'* ** surprised if *** *** *** **** ** Nortek ****** **** ***. **** ***** said, **** ******** **** *** ****** pricing.
*** **** ***** ****, ***** ****** recently **** *** ** *** **'* cheaper ** ******** **** ***.
***** ****** ******** **** *** **
****, * ****** **** *******.
*** *****, *** * *** ** blame *****!
(**** ** ***** ** * ****. Please **** ** ** ****)
* *****’* ****** * ****** ** television ** ***** *** *’* *** pretending ** ** *** ** ******* a ***** ************** ** ****** ****.
* **** ******** ********* **-**** ***** trainings **** *** **** ** ***** about **** ** ***** *** **** isn’t ** ** *********.
* **** **** ****** * *** employment ********** ** ** ******.
*** **** ** **** ***** * bell *** ******* *** *** **** to the ******** *** ********** **** * corruption **********. *** ********* *** ** severe *** ****** ** **** *** company *** *** ********. ***, **’* foreign **********, ***
* ***’* ******** ******* ** ********** agreement **** ******* ** ** **** money **** ******* ****** ** *** same ********. * ***** ******* ******* Amway ***** **** **** ****. ** course, * *****’* **** ** ****** a ****** *********.
*********** ***** ******* *** ****, ***** the ******** ** ********* ******* *** vendor, *** *** ******* ** ** the ********* *****. ** ******* ** of * ********* ** * ***** life **** * ***** ** *** PC ********** ** *** **'*.
**** *******: ** *** * ******** PC ********** ******* *** **** **** out *** '*** ****** ** *** Year' ***** ***** ****. **** *** guy **** ******* **, ***** *** day ** *** **-********** ** ** IBM ******. ****** *** ** *** been **** ********* *** **'* ** Latin ******* ** *** ********* **** and *** ***** *** ****** *** had ****** * ***** *** ** it ***. ***? ******* *** *** rep's **** *** * **** ****** agent *** *** ****** ****** *** house **** *** *** ****** *** sold ** ******** ***** ********** **** gig ****** *** *** *** ***'* family.
**** *******:
**** *: *** *********** ** "********** IBM ******" *** * **** ****** key ** ***** * ********** ****** back ****. **** *** **** ** ***** Axis/Milestone ******** ** *** ******** **** maybe ** ***** ***. *** ********* world *** ********** * ******* ***** from **** ********* ** '*********** ************', and ** *** *****'* *********, *** were ******* **** ******. **** **'* costing ***** $**** *** **, **** then, ** *** ******* ** *** a ******* *** * ***** *** 100 ** **** **** * ******** bank, ****. ****, ** ******. **** brought *** *** **** **********, ******* to *** * ***** ** *** action. *** '*****' ** **** ****, were ******** ******* ******* ***'* *** were ***, ** ****, ********** *** dealers. ***** *** **** ****** ***** product *** ***?
**** *: ** **** ** **** an ****** ****** ********** ** *** the ** ******* ** *** *****. They **** *** ****** *** '*** IBM ******', '*** ****** ******', *** HP ******, ***. **** *** ********** from *** ****** **** ******* *** Top *** ******, **** ***** ****. Then, *** **** ****, ** *** word ** *** **-********** ** ***. Well, ** *** ********** **** **** dealership *** *** ****** ** * lot ** *** **** *********. ******* shipping ********** ** *** **'* ** Latin ******* *** ***** *********.
**** * *** *** ** *** away **** ** *** ** **** you ***? ****, **** **** *** subject *******, ***** ***. *** * rep **** ******** *** *********'* ***********. They **** **** ***** *************, **** support ******, *** ****** **********. * would ****** * ***** **** ****** had ****** **** ****** *** ** occasional ***** *** ** ** ****** in ***** ** *** *** ******* numbers **** ********** *** ******. *** it **** ******: **** ********** *** rep *** * **** *** *** a **** ****** *****. ** * was ****, *** *** ****** ******* to *** *** ***** ** *** sale *** ****** ** **** ***** who. ** *** ***** ****, **** house *** ****** *** **** ** many *****, **** ** **** ***** have **** *******. * ***** ** changed ***** ******* *** ******* *** wife, *** **** ** **** ***** trail.
**** **** *** ****:
* *** ****** *** *** ***** phosphorous ***** **** *** ***. *** they **** *****. *** ******** ***** weighed **** **** * ***** *****.
** *** **** *** *** ***** been **** ** *** **** **** it
***** ** ** **** ******** ** our ********* ** ******* ***** *** cost *****
**** *********** *******
* ***’* **** **** ** *** so * **** *** ******* ** their ********
* ** **** *** *** ** has ****** **** * *********
* ** ********* **** ** *** done ****
* **** ** *** ****** ******
** **** ***** *** ********* *** existent
**** * ******** ** ** ****** rep
* *** ******* ****** *******
** **** **** ** *** ** to ****** **** ******** **** *** shelves ** *** **** ***** ********
** *** **** ********** ** ******* with ****
**** ** *** **** ******* ** the **** *****, ** ** **** sales
*** ** *** ***** *****
**** ****** ** *** ********** ** bribing ****
**** ** ********* **** ****** *** be ********* ** ***
*** **** ** *** ******** **** is ********** ******
* **** **** **** * ******* manufacturer *** ***** *** **** **** when **** *** ****** ******* ** inebriated
*** **** ***** * ***** ** at **** **** **
”**, **** ** ******* **** **** I *** ** **** *** ***** he ******** **** **** ********* ***”
** *** ** ******** **** ********* functions ** *************
*********** ****
*** ***** ******* **** ****** **** a ******
*** *********** ** ***** **** ** there
*** **** ******* **** ** ******* in ** ********** ** **** * ******** CEO ** * ***** *********** ******* not **** ******** * ******** *** a ******* *** **** ******* ****** *much* ****** **** ****** ******* ** we ***** **** *** ****...
** *******, **** ****** *** ******* deals ** ******** ** ********* ** dollars **** *** **** **** *** are **** **** ***** ** ******* a ***** **** ** ******** *** choosing *** "*****" ***** ***** **** others.
"*** **** ** *********** ** ***** court..."
*/* ********* *****, **?
*** ******** ********* *** ***** ** Louisiana, *** *** ***** ******* ** transfer ** ***** ***** *** ********** all ***** *** ********* ** ******* of **** ** ************.
***, **** ****!
*************, ************, ******* ** **** ** you **** *** *********** ** **** you ***** ** ********* ******** ******?