Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against LifeLock, Inc.
Oklahoma City, OK (July 27, 2015) – On July 22, 2015, a securities class action lawsuit was filed in the United States District Court for the District of Arizona against LifeLock, Inc. (NYSE: LOCK). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is July 30, 2014 through July 20, 2015. More specifically, this litigation was filed because 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.
In 2010, LifeLock entered into a settlement order with the Federal Trade Commission ("FTC") and purportedly changed its marketing and business practices in connection with that settlement. On July 21, 2015, the FTC “asserted 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 service, and by failing to take steps required to protect its users’ data.” According to the FTC, LifeLock violated the 2010 settlement order from at least October 2012 through March 2014 by: 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) failed to meet the 2010 order’s recordkeeping requirements. On this news, the Company’s shares declined to close at $7.91 per share.
Plaintiff seeks to recover damages on behalf of all LifeLock, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Monday, September 21, 2015 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click here to obtain an investor certification. Once complete, please email this form to firstname.lastname@example.org, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.
Posted on Mon, July 27, 2015
by Robin Hester filed under