End User Sues ADT/Tyco For $42 Million

Author: Carlton Purvis, Published on May 06, 2013

It was the biggest drug heist in American history. Burglars drove an 18-wheeler up to the Eli Lilly distribution center in Enfield, Connecticut, disabled its security system, rappelled through the roof and made off with $75 million in pharmaceuticals. [UPDATE May 7, 2013 - case dismissed, then refiled with new claims against ADT / Tyco].

Last summer, the U.S. Attorney’s office indicted 11 people for selling drugs stolen from the facility, but the burglary case has centered around the Villa brothers, Amaury and Amed, who are now awaiting trial in Connecticut

Eli Lilly’s insurance company, National Union Fire Insurance, is suing Tyco and ADT to recover money it paid out after the heist. National Union believes ADT’s failure to protect sensitive security information led to the heist and is asking for $42 million in damages. In this note, we review the complaint and situation.

Background

According to court filings, ADT has provided security equipment and monitoring for Eli Lilly’s Enfield locations since 1974. In August 2004, ADT reviewed the distribution center’s security system and provided Eli Lilly with a report that included an inventory of all its existing security equipment and suggestions for additional surveillance. Later than year, Eli Lilly signed a 5-year contract with ADT to implement the improvements noted in the report. The contract included annual inspections and reports.

In 2009, ADT again evaluated the Enfield facility, this time to “review of the adequacy of the services provided” under the 2004 contract.

** ******** ** *** **** ******, ***** *** *** ******* any **** ** ******** ** *** ******** ** ********* *** vulnerabilities, *** **** *** ******** ******** *********** ** ****** *********, their *********** *****, *** ***** ****** ***** ****. ** ******** blueprints ** *** ******** ****** **** *********** ** “***** ****** detector, ****, **** *****, ********, ******** **** *******, ***** ******, panic ******, **** ********, ***** ***** ******, *******, ******* ***** and ******,” ********* ** *** ********* **** ******** *****. *** ****** also ***** **** *** ****** ******* **** *** *** ******* by ******* ** ****** *********.

*** “******** * ******** *** ******** ****** ** *********’* ******** security ****** ******* * “************* ***** ** ***** ******** ************* and **** ******** ** **** ******,” *** ********* ****. **** **** a ***** ***** *** ****** *** ******* ******* **** *** with * *******-******* ***** ** ***************.

Too **** ************?National Union believes thieves had access to the report and here is why (see the **** *********):

  • ***’* ******* *** ***** ** **** *****, *******. *** *** men ******** *** *** ******** **** **** *******.
  • ******* ** *** *********** ******** ****** *** *******-******* ** *** only ******* **** ******* ** **** ** *** ********'* ************ cameras.
  • *** ******** ******* ****** ****** ** *** **** *** ******* by ******* * * **** ** * **** **** ***** the ****** ******* **** -- *** **** **** *********** ** the **** ****** *** *** **** **** ****** *** ******** not ******* ** ************ *********. ****, **** ******** *** ******** system.

*** ** **** ******** ** **************, *******, *** ***** **** not **** *** **** ******* **** *** ***** ***** **** leaked *** ***** **** ** ****** ** ******* **** ***. But ******** ***** ******** ******* ***** ***-******* ********** **** *** had * **** *** *****. 

*** ********* ******** ********** ** ********** ** *******, ***** *******, Texas *** **** ******, ********. ** *** ** *** **********, which ** ** *** **** ** ****, *** ********** *** been ******** ******* ** ***.

**** ** ****** *****, *** *** ******** *** *** *** Lilly ****, **** ********* ** *** ** ****. ****** *****’* lawyer **** *** ******** ***** ** ******** ***** ***** ********** *** ******** ***** ******** ***** ***** *** *********.

******** ***** ******** **** ***'* ******* ** ********** ******* ** sensitive ************ *********** ** * ******** ** ******* *********** ** the ****. *** *******: *** **** * ************* **********, **** not **** *****, * ******** ** *********** ** ******* **** advanced ********* ** ******** *******. 

Feedback **** ******** ***** / *** *****

* ************ *** *** ***** ******** *** ********* ******* ** the **** ** ******** *****. * ************ *** ******** ***** said **** ** *** **** ***** ******* **********, *** ** would *** **** ********** *********** ** ***** ******* **** ***** what ***** ******* ** *** ********* ******** ***** *** ** ADT’s **********.  

******** ***** **** *** *** ***** ***** *** *********** *** ADT ** ********* *** ******* ** ***** *** ******* ** the ********** ********* ******** ***** ******* *** ******* ** ********* sensitive ***********. *** “*** * **** ** *** **** *** knowledge **** ******** ********** ** ********** ** ***** ** ******** security ********, *** ***** ***** ********* ************ *********** ***** *** details ** *** ******** ******* ** *********,” *** ********* *****. 

How *** ********* ******** ********* ****** ***********?

* **** ********** ******* ************** **** ** ** *** **** that **** ***** *** ***** ************ ** *** *** ***** case, *** **** ** *** ******* *** ***** ***** ** reviews ** ******* ******** *********** **** ***** ***** *** ***************. They ******* ******* * **** ** *********** ********* *** **** sometimes **** ******** *********. 

**** ********* ******* *** ********, **** *** ****** ** * secure ******* ********** ** **** **** ********* *** *************** *** not ******** *** ** *****. *** ******** ******* **** *** discussed ** ****** ** ** *** *****, **** ****. 

“** *** * *** ** ****** **** **** *********,” *** Tyco ************** ****. “**** ****** **** * **** ** ***** loss ********** ****** ***************.”

UPDATE: **** *********

** ***** ****, ******** ***** *********** ********* *** **** ******* Tyco *** ***,********* ** ***** ********* ******** *********. **** ***** *** ***** ***** **** ****** ****** ** *******. ** *** ******, **** **** *** *****’* ******** **** National ***** ****** ** **** ***** ** *** *****’* ******. Additionally, *** ****** **** *** **** *** ******* ***** ***********’* statute ** *********** *******.

* ****** *** ******** ***** ********* **** ********* **** *** case *** *********, *** ** “**** ** *** ** *** Florida ******.”

******: *******

*** **** *** *** **** ***** ** *******. ****** *** ****, ******** ***** ******** **** ****** *** **** ***** *** access ** ***'* *******. ***** ***** *****, *** *****'* ******, **** *** still **** *** **** **** ********, ** ***, ******** ***** has ********** **** ** ****** ******** *****. ***** *** *****, she ****, *** *** ***** ***** ** *** ******* ****** Eli ***** ******** ***** ** **** ** *** **********. 

“***** ********** ****’* ********. ***** *** ****** ****** *** ** civil ********** **** ****’* ****** ****,” **** *****’* ******. ***** said ******** ***** ** **** ***** *** ******.

Comments (1)

******* *** ******** ** *** ***** **** **** ** ********* security **********, ** **** ******* * **** *********** *** ******** to ****** *** **** *********** ** ****.

** ** **** *****, '************' **** *** ***** '******'. ******* these ******* ****** ** ****** ********* *** ******** **** ****** on ******** *********** ***** ** ** ********** *******. ****** * point ** *********** *** **** ******** ** **** *********** ** (potential) *********/********** ***** *** **** **** ** ****.

****** ****** ** ***** **** ******** ****** ********* ** ******* or **** ****** ******* *********** *******!

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports

Manufacturers Shipping Unlicensed H.265 Products on Jun 22, 2017
While H.265 support in video surveillance is growing, IPVM's research shows that most surveillance manufacturers are shipping H.265 products with...
No Hack, Still Liable, Court Finds ADT on Jun 20, 2017
Recently, ADT has been in the news for a $16 million settlement for a cyber security vulnerability class action suit. One of the most important...
Non-Competes Divide Integrators on Jun 12, 2017
Non-competes are controversial legal agreements that prohibit parties (typically employees) from working in a similar role or trade of their...
Simplisafe Warns Customers About Alarm Fines on Mar 17, 2017
Simplisafe markets themselves as a 'better way' than traditional professional alarm companies. However, in one key way, Simplisafe hides the...
Honeywell Sues Alarm.com For Violating Anti-Trust Laws (Settled) on Feb 24, 2017
Is Alarm.com about to dominate the smart home software market? That is what Honeywell alleges in its new lawsuit, first reported by...
Avigilon Stock Surges 40% On Strong Growth (Q3 2016) on Nov 15, 2016
The roller coaster continues. After a brutal Q2 heading down, Avigilon's Q3 growth is strongly up. Inside this note, we examine what powered...
'Legal Protection' From Eagle Eye Contract Vault Examined on Nov 02, 2016
"I was promised the high-end model for the entry level price." "Nobody said there would be a monthly service fee when I signed...
Dahua Says They Are Botnet Attack 'Victims' on Oct 26, 2016
'Victim' or 'accomplice'? Dahua has issued a new press release, referring to their products as 'victims' of the massive botnet attacks hitting the...
Video Surveillance Manufacturers Risk Lawsuits For Botnet Attacks on Oct 24, 2016
The unprecedented scale of internet outages on October 21st from botnet attacks risk triggering lawsuits against video surveillance manufacturers,...
Chinese Company Xiongmai Threatens Legal Action Against Western Accusers on Oct 24, 2016
The Chinese video surveillance manufacturer, Xiongmai, whose equipment numerous sources blame for driving massive Internet attacks over the past...

Most Recent Industry Reports

Biometrics Pros and Cons For Electronic Access Control on Jun 26, 2017
Biometrics has been long sought as an alternative to the security risks of cards, pins and passwords. While biometrics has improved somewhat over...
Manufacturer Sales People Are Very Important - Statistics on Jun 26, 2017
IPVM's new integrator statistics show what sales people say regularly: Sales people are very important. From 150 integrator...
No Personal Opinions About Work on Jun 26, 2017
One rising trend is the tendency for people to disclaim their statements on work related topics as their own 'opinions' or 'personal...
Importance of Sales To Integrators - Statistics on Jun 23, 2017
One of the top trends in the industry over the past few years has been the rise of across-the-board sales (e.g.: Hikvision Sales, Dahua Sale,...
Deep Learning Surveillance Startups Deep Problem on Jun 23, 2017
The undeniably good news for the video surveillance market is that we are seeing the rise of more startups than in many years. The cause of this...
Avigilon Announces RADAR-Based Presence Detector on Jun 22, 2017
RADAR is gaining momentum within physical security. Two months after Axis announced a network radar detector, Avigilon has announced a RADAR-Based...
Covert Cloud Camera Service Launching (KJB) on Jun 22, 2017
Cloud IP cameras, for consumers, has become increasingly commonplace. However, covert cameras, lag there, with few options. Now, North America's...
Uniview Low-Cost Bullet PTZ Tested on Jun 21, 2017
Uniview is offering a HD zoom bullet camera, the IPC742SR9-PZ30-32G, with an integrated pan / tilt positioner, for the price of a low-cost...
QSR Video Surveillance Best Practices on Jun 21, 2017
Fast food restaurants or QSRs (quick service restaurants), are frequent victims of crime and fraud. Because they are open late, deal with cash, and...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact