NEW YORK, July 21, 2015 /PRNewswire/ -- 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.
Bernstein Liebhard LLP
10 East 40th Street
New York, New York 10016
(877) 779-1414
www.bernlieb.com
ATTORNEY ADVERTISING. © 2015 Bernstein Liebhard LLP. The law
firm responsible for this advertisement is Bernstein Liebhard LLP,
10 East 40th Street, New York, New
York 10016, (212) 779-1414. The lawyer responsible for this
advertisement in the State of
Connecticut is Michael S. Bigin. Prior results do not
guarantee or predict a similar outcome with respect to any future
matter.
Contact Information
Joseph R. Seidman, Jr.
Bernstein Liebhard LLP
http://www.bernlieb.com
(212) 779-1414
seidman@bernlieb.com
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