LifeLock, the well-known, heavily advertised identity theft protection services company, is being sued by its own shareholders, the law firm of Kessler Topaz Meltzer & Check, LLP announced on July 27.
The complaint alleges that LifeLock and certain of its executive officers made a series of false and/or misleading statements to investors, and failed to disclose material adverse facts about the Company's business, operations and prospects.
Specifically, the defendants are alleged to have made false and/or misleading statements and/or failed to disclose, among other things: (1) that the Company had failed 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) that the Company falsely advertised that it protected consumers' sensitive data with the same high-level safeguards as financial institutions; (3) that the Company failed to meet the 2010 settlement order's recordkeeping requirements; and (4) that, as a result of the foregoing, the Company's statements about its business, operations, and prospects, were false and misleading and/or lacked a reasonable basis. Read the law firm's complete press release at CNN Money....
Last week, the Federal Trade Commission re-opened an investigation into LifeLock's fraudulent activities after the company failed to honor 2010 court order to repay its clients $12 million.
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