ADT settles lawsuit for $5.5 million

Security firm sued dealers

ADT, the security company based in Boca Raton, announcedFriday it has settled litigation with several dealers for a total of $5.5 million over allegations of deceptive practices by the retailers.

The private security firm said it settled lawsuits with Utah-based Adler and its owner Adam Schanz; and with twoMonitronics dealers, Rhode Island-based Alliance Security and ArizonaCapital Connect. None of the dealers could immediately be reached for comment.

ADT said it is scheduled to receive $3 million from Adler, $1.5 million fromAlliance Security, and $1million fromCapital Connect.

The settlements stem from two lawsuits brought by ADT against the dealers, claiming sales representatives from Alder, Alliance Security and Capital Connect misrepresented themselves as being affiliated with ADT, or that customers’ security systems needed “upgrading.”

The complaint against Adler was filed in the U.S. District Court inWest Palm Beach. The complaint against Alliance and Capital Connectwas filed in federal court inDallas.

Since 2013, ADT has filed numerous lawsuits against independent security product dealers. The company asserted that the retailers made false or misleading statements to ADT customers in trying to solicit their business.

ADT provides security and automation products to residential and business customers in the U.S. and Canada. It is the nation’s oldest security company, founded in 1874 as American District Telegraph.

At its Boca Raton headquarters, ADT has about 450 employees. The company employs18,000 people globally.