ADT on Tuesday announced that it has settled a deceptive sales lawsuit that it recently brought against Utah-based NorthStar Alarm Service for $3 million.
In a statement, ADT said that it provided evidence from at least 500 customers who reported being victims of deceptive sales tactics from NorthStar employees over the past five years.
The settlement comes less than two months after a jury awarded ADT $4 million in damages, including $1 million in punitive damages, in a similar deceptive sales lawsuit against Alder Holding.
“Companies that rely on deceptive sales tactics in order to compete damage the reputation and integrity of our industry. As a trusted leader, ADT is committed to stopping fraud at the front door by continuing to pursue legal action against those companies in our industry that intentionally mislead consumers,” said David Smail, ADT Executive Vice President and Chief Legal Officer.
In a statement provided to SecurityInfoWatch.com, Jared Parrish, CCO and General Counsel for NorthStar, said that the company – which has also accused of ADT of engaging in similar deceptive sales practices – is committed to ridding the industry of underhanded tactics.
“This settlement resolves nearly four years of litigation between the companies involving historical deceptive sales allegations against one another. NorthStar provided evidence from nearly 100 of its customers stating they were victims of deceptive sales tactics by ADT,” Parrish said. “The settlement allows NorthStar to move forward and continue to offer superior service to our nationwide customer base. NorthStar continues its commitment to eliminating deception from the industry, and is pursuing litigation against other companies that engage in deception and victimize its customers. NorthStar prides itself on ensuring the highest internal standards of compliance and business ethics, and protecting its customers from illegal conduct.”