LifeLock, Inc. announced 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.”
Source: LifeLock Press Release