Home security and smart home company Alarm.com Holdings Inc. is set to pay $28 million to settle a three-year class-action case alleging that the company violated the Telephone Consumer Protect Act (TCPA). The case argues that one of Alarm.com’s 6,000 third party service providers repeatedly made robocalls and calls to consumers on the National Do-Not-Call (DNC) Registry.
Judge Yvonne Gonzalez of the U.S. District Court for the Northern District of California certified three classes of plaintiffs who received illegal calls from the company’s partner, Alliance Security. Alliance Security allegedly used an automated telephone dialing system (ATDS) to call mobile and residential numbers on the DNC Registry to market Alarm.com products.
Alarm.com previously argued that the suit should be dismissed because the dialing equipment used by Alliance Security did not meet the TCPA’s definition of an ATDS. The company “does not and has not ever made outbound telemarketing calls in violation of the TCPA,” said Steve Trundle, president and CEO of Alarm.com. Alarm.com has yet to admit liability in court but decided it was in the company’s best interest to settle the case prior to a jury trial.
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