Jury rules competitor must pay CPI Security $140M for deceitful sales tactics

WSOCTV.com News Staff
·1 min read

A home security company must pay $140 million to its competitor after a jury ruled it used deceitful sales tactics.

CPI Security sued Vivint, a smart home company.

CPI alleged Vivint employees posed as CPI employees by making some of the following false claims:

  • Vivint representatives presented themselves as being affiliated with CPI

  • Vivint is purchasing or has purchased CPI

  • Vivint is “taking over” CPI customer accounts

  • Vivint manufactures CPI’s equipment and is at the customers’ homes to upgrade CPI’s system

  • Vivint was sent or is acting on behalf of CPI

The suit also says Vivint even convinced CPI customers into signing contracts.

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CPI’s CEO gave one example of a customer who said a Vivint employee tried to convince her CPI was going out of business.

“Mary, being terrified at the thought of not having a system, immediately let them install it. You see ‘cause Mary is legally blind, and her security is very important to her and she spent most of her time alone,” said CEO and founder Ken Gill. “But once the technicians left, she realized that she just didn’t feel good about it. So she picks up the phone, like many other customers, and calls CPI, only to find out CPI was in fact not going out of business, and she’d actually been scammed.”

Gill thanked the customers who came forward or testified.

Vivint released the following statement:

“We are extremely disappointed with the jury’s decision, which we believe is not legally or factually supported. 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.”

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