U.S. District Court, Northern District of Texas
Security and automation solutions provider ADT filed a complaint against Capital Connect and other alarm companies in July 2015, asserting claims for violations of the Lanham Act and common-law unfair competition. ADT alleged that Capital Connect and other competitors engaged in deceptive practices with ADT’s customers that often resulted in ADT customers unknowingly switching from ADT to another security service provider. As a result, customers were committed to two monitoring services: a preexisting contract with ADT and a new one with the competitor company.
After receiving multiple customer complaints about Capital Connect sales agents, ADT moved for a preliminary injunction, requesting that the court enjoin Capital Connect and its agents from engaging in certain deceptive sales practices. The U.S. District Court, Northern District of Texas, granted ADT’s Motion for Preliminary Injunction, prohibiting Capital Connect from continuing to engage in false sales practices with ADT customers.
ADT LLC et al v. Capital Connect, Inc., 3:15-cv-02252-B (N.D. Tex. 2015).