Avila v. Lifelock, Inc.
On October 9, 2015, Bernstein Liebhard LLP was appointed Lead Counsel in this Action. Lead Plaintiffs allege that LifeLock violated the federal securities laws by misrepresenting its ability to provide “near real-time” alerts to consumer customers. Lead Plaintiffs also allege that the misrepresentations about near real-time alerts violated a Federal Trade Commission (“FTC”) consent order relating to LifeLock’s advertising and marketing practices (the “FTC Order”). Lead Plaintiffs filed an amended complaint on December 10, 2015, alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (“Exchange Act”), and Rule 10b-5 promulgated thereunder, by the United States Securities and Exchange Commission (“SEC”), against LifeLock, Todd Davis and Chris Power. Defendants moved to dismiss the amended complaint and their motion was granted on August 3, 2016. The operative Second Amended Class Action Complaint, alleging violations of Sections 10(b) and 20(a) of the Exchange Act, and Rule 10b-5 promulgated thereunder, was filed on October 14, 2016 against LifeLock, Davis, Power, and Schneider, and challenged statements related to LifeLock’s alert services and PCI-DSS compliance, as well as the FTC’s investigation.
On August 21, 2017, the Court issued an Order granting Defendants’ motion to dismiss the Complaint for failure to adequately allege a claim with prejudice. Lead Plaintiffs filed a notice of appeal to the Ninth Circuit Court of Appeals appealing the MTD Order. On August 29, 2019, the Ninth Circuit issued an Order reversing in part and affirming in part the Court’s MTD Order. The Ninth Circuit remanded the case for further proceedings consistent with the Order.
The Parties agreed to settle the Action in early March 2020 for $20 million, pursuant to a memorandum of understanding. March 27, 2020, the Parties executed the Stipulation and Agreement of Settlement.
The case is Avila v. LifeLock, Inc., No. 15-cv-01398 (D. Ariz.). Bernstein Liebhard represents lead plaintiffs Oklahoma Police and Fire Pension and Retirement Systems. The defendants are LifeLock, Inc.; Todd Davis, LifeLock’s Founder and former CEO; and Hilary Schneider, LifeLock’s former President and CEO.