Fourth Circuit Affirms Shook Win in $189 Million Home Security Verdict

On July 22, the U.S. Court of Appeals for the Fourth Circuit fully affirmed CPI Security’s jury verdict against Vivint in a case involving unfair competition claims stemming from the use of deceptive door-to-door sales tactics to poach customers. 

In February 2023, after a two-week trial in federal court in Charlotte, North Carolina, the jury awarded CPI $189 million in damages, which included $140 million in punitive damages. Vivint appealed after it lost numerous post-trial motions. The primary issues in the appeal were the interpretation of North Carolina’s punitive damages cap, whether North Carolina’s Unfair and Deceptive Trade Practices Act applied to the case, and whether the construction of the verdict form led to double counting when the jury awarded different damages for each cause of action. Vivint also appealed a number of evidentiary issues. The court unanimously sided with CPI.
 
A Shook team comprised of partners Charlie Eblen, Eric Hobbs, Jason Scott and Caroline Gieser represented CPI. 

Bloomberg Law, Law360, The Carolina Journal, and Security Sales & Integration reported on the decision, and ALM picked the outcome for its Litigator of the Week Runners-Up.

The case is CPI Security Systems v. Vivint Smart Home, No. 20-504 (4th Cir., July 22, 2025).