LifeLock Statement on Final FTC, Class Action Settlement
17 Dezember 2015 - 6:03PM
Business Wire
LifeLock, Inc. (NYSE: LOCK), an industry leader in identity
theft protection, today said that the Federal Trade Commission
(FTC) approved a comprehensive settlement agreement that was
originally announced in October. Once approved by the courts, the
settlement will help bring to a close outstanding litigation with
both the FTC and representatives of a national class of consumers
relating to past marketing representations and information security
programs.
As a part of the settlement, LifeLock neither confirms nor
denies the allegations of the parties.
Under the settlement’s terms, $100 million will be placed into
the registry of the court that is overseeing the FTC’s lawsuit
against LifeLock, to be distributed as follows:
- $68 million is authorized to be
transferred to the court that is overseeing the class action filed
against LifeLock, which would be sufficient to fully fund the
consumer redress contemplated by the class action settlement.
- $32 million would remain in the
registry of the court overseeing the FTC’s lawsuit. All of that
money is authorized under the terms of the settlement to fund
consumer redress ordered by any state attorneys general, provided
that certain conditions are met. If none of that money is used for
that purpose, the money would revert to the FTC.
- In addition, legal and other
administrative fees will bring the total amount to $113 million,
which has already been accrued and was disclosed in our latest
10-Q.
The company made the following statement in connection with the
approval of the settlement by the FTC:
“The FTC’s approval is a key component of a comprehensive
settlement designed to enable LifeLock to move forward with a
singular focus on protecting our members from threats to their
identity. Our members are our highest priority and we are gratified
by their confidence in us, reflected in the performance and
continued growth of our business.
“The allegations raised by the FTC are related to advertisements
that we no longer run and policies that are no longer in place. The
settlement does not require us to change any of our current
products or practices. Furthermore, there is no evidence that
LifeLock has ever had any of its customers' data stolen, and the
FTC did not allege otherwise.
“As part of our commitment to continual improvement, in recent
years we have made significant investments in our people, process
and systems throughout the company to address ever more complex and
pervasive identity threats. We are pleased to put this matter
behind us and look forward to continuing to provide
industry-leading identity protection services to our members.”
About LifeLock
LifeLock, Inc. (NYSE:LOCK) is a leading provider of proactive
identity theft protection services for consumers and consumer risk
management services for enterprises. LifeLock’s threat detection,
proactive identity alerts, and comprehensive remediation services
help provide peace of mind for consumers amid the growing threat of
identity theft. Leveraging unique data, science and patented
technology from ID Analytics, Inc., a wholly owned subsidiary,
LifeLock offers identity theft protection that goes significantly
beyond credit monitoring. As part of its commitment to help fight
identity theft, LifeLock works to train law enforcement and
partners with a variety of non-profit organizations to help
consumers establish positive habits to combat this threat.
Forward-Looking Statements
This press release contains “forward-looking” statements, as
that term is defined under the federal securities laws, including
statements regarding the resolution of the FTC and consumer class
action matters, along with its impact on the future performance of
our business. These forward-looking statements are based on our
current assumptions, expectations, and beliefs and are subject to
substantial risks, uncertainties, assumptions, and changes in
circumstances that may cause our actual results, performance, or
achievements to differ materially from those expressed or implied
in any forward-looking statement.
Further information on these and other factors that could affect
the forward-looking statements in this press release is included in
our SEC filings, including our Annual Report on Form 10-K for the
year ended December 31, 2014, particularly under the captions “Risk
Factors” and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” and our Forms 10-Q. Copies of
these documents are available on our Investor Relations website at
http://investor.lifelock.com/ or the SEC's website at
www.sec.gov.
We assume no obligation and do not intend to update these
forward-looking statements, except as required by law.
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version on businesswire.com: http://www.businesswire.com/news/home/20151217006141/en/
LifeLock, Inc.Kelley Bonsall, +1
480-457-2170media@lifelock.com
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