Does Pinnacle want to say goodbye to rogue summer sales people?
It appears that the bad boys of summer are making some real efforts to turn things around. PInnacle Security, which became synonymous with "rogue summer salespeople" in news story after news story this summer, was slapped with a lawsuit Oct. 27. The company is being sued by the Illinois AG's office for bad behavior during sales calls. Seems 27 complaints were filed with the AG's office and all involve misleading sales tactics, which was enough for the AG to take action. I spoke yesterday to Pinnacle general counsel Lance Lenhof, and COO Steve Hafen, about the suit and about what Pinnacle's doing to make sure the summer sales snafus of 2009 are not repeated in 2010. Truth is, it sounds like they really are making some changes. I'll have more in a newswire story tomorrow, but Hafen reeled off a number of concrete steps they've taken, among them: a beefed up compliance department, and new executive-level compliance officer; an expanded licensing department; and a new (to be hired) deputy counsel to whom the compliance and licensing departments will report. Of course, we won't know how effective these steps are until next summer, but I'd call this a very smart move on Pinnacle's part and good news for the industry as a whole.