Faruqi & Faruqi Investigation: LifeLock, Inc.
Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential misconduct by the officers and directors of LifeLock, Inc. (“LifeLock” or the “Company”).
The investigation focuses on the role of the Company’s officers and directors in failing to comply with the terms of a settlement entered into by the Company with the Federal Trade Commission (“FTC”) in 2010 in connection with claims made by the Company concerning its identity theft product (the “2010 Settlement”). On March 9, 2010, the FTC issued a press release announcing that it had entered into the 2010 Settlement whereby LifeLock agreed to pay $11 million to the FTC and $1 million to a group of 35 state attorneys general to settle the claims set forth in the FTC’s complaint. The 2010 Settlement also barred LifeLock from making deceptive claims, misrepresenting the risk of identity theft, and the manner and extent to which LifeLock protects consumers’ personal information. The 2010 Settlement required LifeLock to establish a comprehensive data security program and obtain biennial independent third-party assessments of that program for twenty years.
On July 21, 2015, the FTC issued a press release announcing that from at least October 2012 through March 2014, LifeLock violated the 2010 Settlement 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 recordkeeping requirements. In documents filed with the U.S. District Court for the District of Arizona, the FTC asked the court to impose an order requiring LifeLock to provide full redress to all consumers affected by the Company’s violations of the 2010 Settlement.
If you currently own LifeLock stock and would like to discuss your legal rights, please contact us by calling Stuart Guber toll free at (215) 277-5770 or by sending an e-mail to firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding LifeLock’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.