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Enforcement case record

ADT SCRA Settlement: $1.26 Million to 3,400 Servicemembers

Defendant
ADT, LLC (ADT Security Services)
Year
2026
Scale
At least 3,400 servicemembers
Statute
50 U.S.C. § 3956
Outcome
Settlement (April 14, 2026): $1,260,000 to compensate the servicemembers and a $79,380 civil penalty to the United States, plus revised policies, procedures, and training materials.

What happened

On April 14, 2026 the Justice Department announced that ADT LLC, doing business as ADT Security Services and the largest home security services company in the United States, would pay over $1.3 million to resolve allegations that it imposed unlawful charges on at least 3,400 servicemembers who terminated home security contracts after receiving military relocation orders.

The specific practice alleged was a 30-day notice requirement. DOJ maintains that policy violated the SCRA, which lets a servicemember terminate certain consumer contracts any time after receiving orders to relocate to a place that does not support the contract. Once a servicemember terminates under the statute, a company cannot charge fees beyond the current billing period.

Home security services are one of the six contract types Section 3956 covers, alongside commercial mobile service, telephone exchange service, internet access, multichannel video programming, and gym or fitness memberships.

The law behind this: 50 U.S.C. § 3956

Termination of certain consumer contracts: read the statute.

The law is clear. When servicemembers receive relocation orders, they have the right to terminate contracts without penalty beyond the current billing period.

Jason A. Reding Quiñones, U.S. Attorney for the Southern District of Florida

Who was covered

Servicemembers who terminated an ADT home security contract after receiving qualifying military relocation orders and were charged under the 30-day notice policy.

What the settlement paid

  • Up to $1,260,000 in compensation to the affected servicemembers.
  • A $79,380 civil penalty, which DOJ states is the maximum penalty for a first violation of the SCRA.
  • Policy and training changes to prevent future violations.

Why this case matters

The largest affected group of any single-company case in this ledger. A 30-day notice clause reads like ordinary contract boilerplate, and applied to 3,400 servicemembers it became a federal enforcement action.

If you think you were affected

Section 3956 covers six contract types, and providers commonly apply notice periods and termination fees that the statute does not allow.

This page is a record of a public enforcement action against ADT. It is not a claim form, and this site cannot tell you whether you are in the covered group. These are the routes that can.

  1. Read the Justice Department’s own record: DOJ case page: ADT, LLC d/b/a ADT Security Services . Settlement administration and any claim process are run from there, never from here.
  2. Start with which service contracts you can cancel on orders , which is the protection this case was brought under.
  3. Contact your nearest Armed Forces Legal Assistance office. It is free for servicemembers and dependents, and it is the right first call on any SCRA question about your own accounts. Our guide to SCRA legal help explains the options.
  4. Confirm your covered dates before you argue about them. The Defense Manpower Data Center issues a free military status certificate; our walkthrough shows how to pull one.

Other consumer contract cases

See all 65 cases in the enforcement ledger

Every figure on this page is transcribed from the Justice Department record linked above, including its own hedges. Nothing is estimated or rounded. The ledger was last checked in full on July 11, 2026.

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Heads up: SCRA Saver publishes general information, not legal or financial advice. Laws change and every situation differs. Confirm details with your installation legal assistance office (free for service members) or a licensed professional.

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