ADT reached a settlement with the U.S. Department of Justice that requires the company to pay $1.26 million to more than 3,400 servicemembers who were allegedly charged for canceling their contracts after receiving military relocation orders. The settlement also includes $79,380 in civil penalties, bringing the total payout to $1.34 million.
The settlement addresses allegations that ADT imposed a 30‑day notice requirement on servicemembers terminating contracts, a practice that conflicts with the Servicemembers Civil Relief Act (SCRA). The SCRA allows servicemembers to end contracts without penalty beyond the current billing period when they receive a military relocation order. The DOJ has enforced the SCRA extensively, providing over $488 million in relief to 152,000 servicemembers since 2011, underscoring the agency’s commitment to protecting military consumers.
ADT will modify its policies and training programs to ensure compliance with the SCRA moving forward. In a statement, the company said, "ADT is committed to supporting members of the U.S. military and their families, and we take our obligations under the SCRA seriously. We appreciate the service and sacrifice of the men and women of our armed forces and remain committed to continuous improvement in how we serve our customers." The settlement does not constitute an admission of wrongdoing by ADT.
The payout is modest relative to ADT’s 2025 revenue of $5.129 billion, representing less than 0.03% of annual sales. The settlement highlights regulatory scrutiny and signals the importance of robust compliance programs for consumer‑facing firms. ADT has faced other legal matters, including a $30 million securities settlement and a $16 million hacking‑vulnerability settlement, but the current settlement does not alter the company’s overall financial outlook.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.