Christina Spicer  |  March 28, 2017

Category: Consumer News

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ADT LogoNew settlement details have been released by the plaintiffs in a class action lawsuit that alleges home security company ADT misleads consumers about the potential to hack their security systems.

The proposed settlement will end five class actions that claim ADT’s security systems are vulnerable to hacking because ADT failed to include any encryption within the systems.

The plaintiffs also allege that ADT covered up the vulnerability and misleads consumers about the security of their systems. Class actions arose out of Illinois, Arizona, Florida and California.

The parties agreed to settle the class action lawsuit in January of this year. According to preliminary approval documents filed in California federal court last Thursday, ADT will end up paying $16 million to end the class actions.

The attorneys representing the Class will receive $5.3 million of the settlement fund for fees and costs. Class Members will be entitled to a $15 or $45 claim based on when they signed their contract with ADT.

“The proposed settlement has no obvious deficiencies. It provides monetary relief and not coupons. The claims process is simple, easy to do, and encourages claims. The Notice program is reasonable,” noted the plaintiffs in their motion for approval of the settlement. “The monetary relief is adequate based on the hurdles that would be faced if litigation were to continue and plaintiffs would have to obtain class certification and establish liability and damages on a class-wide basis.”

The plaintiffs further claim that ADT has provided additional disclosures about their systems’ vulnerability to hacking as a result of the class action lawsuits.

The class action plaintiffs allege in their complaints that ADT was aware that their wireless security systems were vulnerable to hacking because they were not encrypted. However, ADT failed to disclose this adequately to consumers who signed contracts for ADT systems.

The class action was trimmed by U.S. District Court Judge Jon S. Tigar, but claims for fraudulent omission were retained and in early January, the parties notified the court they had settled all five lawsuits.

“Each of the settled cases (the ‘Actions’) share common factual allegations regarding ADT’s alleged failure to disclose to residential customers the alleged vulnerability of its residential security systems to evasion and jamming of the system’s wireless peripheral sensors by various electronic devices, and alleged misrepresentations regarding same,” note the plaintiff in the motion for preliminary approval.

Initially, the class action originating in Illinois was set to ask the court for preliminary approval of the settlement agreement, but the parties went with the California litigation instead. The settlement will include a nationwide Class that will settle the class actions from Illinois, Arizona, and Florida.

Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.

The class action plaintiffs are represented by Mark Chavez and Dan Gildor of Chavez & Gertler LLP, Francis J. Balint Jr. and Andrew S. Friedman of Bonnett, Fairbourn, Friedman & Balint PC, and Tom Zimmerman of Zimmerman Law Offices PC.

The ADT Hacking Vulnerability Class Action Lawsuit is Edenborough v. ADT LLC, Case No. 3:16-cv-02233, in the U.S. District Court for the Northern District of California.

UPDATE: November 2017, the ADT home security hacking vulnerability class action settlement is now open. Click here to file a claim.

UPDATE 2: On Sept. 18, 2019, Top Class Actions viewers started receiving checks worth as much as $50 from the ADT class action settlement. Congratulations to everyone who filed a claim and got PAID!

We tell you about cash you can claim EVERY WEEK! Sign up for our free newsletter.


7 thoughts onADT Will Pay $16M To Settle Hacking Vulnerability Class Actions

  1. wade robinette says:

    First i never received any info. about a lawsuit??? Secondly two months.ago i had a bad fire alarm problem two weeks later a repairman and said the battery was bad need replaced. They said it will cost me a service call and price of the battery. i said i will wait until it start to beep. It has been 2 1/5 mounts ago still working??????? what a scam!!!!! I HAVE ADT FOR going on 10 yrs.

  2. nadia says:

    I was denied… had adt for years

  3. J says:

    Who do we contact on new lawsuits if their flaws have not changed and I feel violated as well as being lied to. I’m single female and they sent make who wasn’t educated, easily hacked system with triple charge of what was promised and they don’t even care that I’m a single women

  4. GTHOH says:

    What sensors would be replaced? Every security company uses the same thing. It is all the same technology. Yaaaay you all won $15! Everyone knows this is crap, the only ones winning here are the bloodsucking lawyers. Might as well sue every alarm company on planet Earth. Good job you chicken littles!

    1. Will says:

      Incorrect. Not every company uses the same technology. Companies use different companies to make their equipment. Some companies even make their own. Some companies don’t use encryption and some use ex military grade frequencies to prevent hacking. Some companies have “crash and smash” technology to help prevent system failures and others do not. Do your research.

  5. Phuong N. says:

    I have the same question. Will ADT replace the sensors or do something about it? I care more about the security part of my home than getting their $45 from the settlement.

  6. ali says:

    Will ADT replace the sensors. Is this problem enough to cancel my contrct

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