July 21, 2015
Bernstein Liebhard LLP is investigating whether LifeLock, Inc. (“LifeLock” or “the Company”) (NYSE: LOCK) issued materially false and misleading statements to investors in violation of the federal securities laws.
On Tuesday, July 21, 2015, the Federal Trade Commission (“FTC” or “the Agency”) filed documents with the U.S. District Court for the District of Arizona asserting that LifeLock violated a 2010 settlement with the Agency and 35 state attorneys general by continuing to make deceptive claims about its identity theft protection services, and by failing to take steps required to protect its users’ data. The 2010 settlement barred the Company and its principals from making any further deceptive claims and required LifeLock to pay out $12 million worth of consumer refunds and to take “more stringent measures” to safeguard personal information collected from consumers.
In the new lawsuit, the FTC claims that, despite LifeLock’s promises, the Company violated the 2010 order from at least October 2012 through March 2014 by “1) failing to establish and maintain a comprehensive information security program to protect its users’ sensitive personal data, including credit card, social security, and bank account numbers; 2) falsely advertising that it protected consumers’ sensitive data with the same high-level safeguards as financial institutions; and 3) failing to meet the 2010 order’s record keeping requirements.” Further, the FTC asserts that, from at least January 2012 through December 2014, LifeLock falsely claimed it protected consumers’ identities 24/7/365 by providing alerts “as soon as” it received any indication there was a problem.
On this news, trading on LifeLock was halted for nearly 30 minutes. When trading resumed, LifeLock shares plummeted almost 47% to $8.64 in intraday trading.
If you are interested in discussing your rights as a LifeLock shareholder and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or seidman@bernlieb.com.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3 billion for its clients. The National Law Journal has recognized Bernstein Liebhard for twelve consecutive years as one of the top plaintiffs’ firms in the country.
