SALT LAKE CITY — A Federal jury in North Carolina ordered Utah-based Vivint Smart Home to pay $189 million to a home security competitor over a lawsuit alleging "deceptive practices."
The competitor, CPI, sued Vivint alleging it used deceptive tactics to try and sign CPI customers.
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Of the $189 million Vivint was ordered to pay in North Carolina, $140 million of that was for punitive damages.
“While we’re thrilled the trial ended in our favor, I want to be clear that this case is not just about CPI’s business,” CPI Security CEO and Founder Ken Gill said in a statement. “We believe for at least 15 years, Vivint has been taking advantage of vulnerable people across the country through deceptive, misleading, and flat-out false practices. I hope today’s verdict will stop their deception for good.”
A representative for Vivint Smart home called the decision "disappointing."
“We are extremely disappointed with the jury’s decision, which we believe is not legally or factually supported," a statement from the company reads. "Furthermore, the amount of damages awarded are egregious and completely disconnected from the total economic impact of any activity that CPI claims to have occurred with respect to this matter. We intend to file an appeal, pursue all legal options available to us and continue to defend ourselves vigorously. We remain committed to operating with the highest standards of integrity and delivering exceptional service to customers.”
Mark Pugsley, who represents whistleblowers who first told the federal government about some of Vivint’s sales practices, spoke with FOX 13 News about the ruling.
“This is huge. It’s a huge hit for any company, and especially a company of Vivint’s size," he said. "They claim to have changed their ways. They claim to have put in new management and new compliance procedures to not have this happen anymore. It remains to be seen.”
Another competitor, ADT, is suing Vivint in Florida over similar accusations.
In May 2022, Vivint Smart Home and the state of Arizona settled a case that the attorney general called “false representations to induce customers to sign a contract." Vivint agreed to pay Arizona $325,000 in penalties and legal fees. It also has agreed to pay another $75,000 in restitution to customers.
WATCH: Video shows Vivint Smart Home salesman making false claims, cited in ADT lawsuit
