ADT drops Security Networks from lawsuit

Prominent super-regional 'not complicit in deceptive practices'
Friday, April 2, 2010

WEST PALM BEACH, Fla.—ADT has decided that Security Networks, whom it named in a lawsuit last week, was not complicit in deceptive sales practices after all and has dropped the super-regional from the lawsuit, Security Networks CEO Rich Perry told Security Systems News on April 1.

On March 24, the first day of ISC West, ADT issued a press release announcing that it was suing Tom Brady, Susan Brady and Lance Woods of The Alarm Company in Memphis, Tenn., and Security Networks. The Alarm Company is one of Security Network’s 200 dealers.

Perry only learned of the lawsuit on March 24. “When I did learn of this lawsuit we pulled the data and researched the issue, and it became very clear to us that we were not complicit with any deceptive sales practices. This is something we do not tolerate in our business,” Perry said. 

There were two customers in question in the lawsuit. “One of them was never a customer of ours. The other one was a customer for about 60 days. When they expressed their desire to terminate the agreement, we did let them out of the contract,” he explained.

The second customer had been released from the contract “well before the ISC show,” Perry said.

“We have very stringent standards and procedures within our business designed to avoid any deceptive sales practices. We have a large section of our training manual dedicated to that,” he said.

ADT will continue to pursue the lawsuit against The Alarm Company. Asked if Security Networks will take any action against The Alarm Company, Perry said he was “reviewing the situation and we will take whatever action is appropriate from a business standpoint based on what we find.”

In terms of the timing of the ADT announcement, Perry said he made it clear to ADT that “if there is ever an issue like this in the future, to give us a call. We want to have an open dialog with other companies in the industry who are in the residential alarm business so we can work together to deal with issues like this.”