- The 4th US Circuit Court of Appeals has affirmed a federal jury’s $189.7 million award to Charlotte-based CPI Security in its legal battle with competitor Vivint.
- The unanimous opinion Tuesday documented “widespread unfair competition,” including the use of “false and deceptive practices” to lure CPI customers to Vivint.
- The award included $140 million in punitive damages.
The 4th US Circuit Court of Appeals has upheld a $189.7 million award to Charlotte-based CPI Security in a legal battle with competitor Vivint Smart Home.
“When a business deliberately engages in widespread unfair competition against one of its rivals over a period of years, the consequences can be expensive,” Judge Paul Niemeyer wrote Tuesday for a unanimous three-judge appellate panel. “In this case, a jury found that Vivint Smart Home, Inc., a home security company, did just that against CPI Security Systems, Inc., a competing home security company, and awarded CPI a total of $189.7 million in compensatory and punitive damages.”
“The jury heard evidence that Vivint salespersons regularly and deliberately lied to CPI’s customers to induce them to become Vivint customers,” Niemeyer continued. “More specifically, Vivint salespersons told CPI customers that Vivint had purchased CPI and would be taking over their accounts, that CPI was otherwise going out of business and would no longer be monitoring their alarm systems, and that Vivint had manufactured their equipment and needed to upgrade their systems.”…