San Diego, CA -- (SBWIRE) -- 04/30/2014 -- An investor, who purchased shares of Lifelock Inc (NYSE:LOCK), filed a lawsuit in the U.S. District Court for the District of Arizona over alleged violations of Federal Securities Laws by Lifelock Inc in connection with certain allegedly false and misleading statements made between February 26, 2013 and February 19, 2014.
Investors who purchased shares of Lifelock Inc (NYSE:LOCK) have certain options and for certain investors are short and strict deadlines running. Deadline: May 5, 2014. NYSE:LOCK investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired securities of Lifelock Inc (NYSE:LOCK) between February 26, 2013 and February 19, 2014, that Lifelock Inc (and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
On March 8, 2010, the Federal Trade Commission ("FTC") filed a complaint against the Company and Defendant Todd Davis, alleging amongst other things, that the Company issued dramatically misleading advertisements and guarantees to customers regarding its identity theft protection services.
More specifically, the plaintiff claims that the defendants made allegedly false and/or misleading statements and/or failed to disclose that Lifelock Inc’s marketing and advertising practices were in direct violation of applicable government rules and regulations, that Lifelock Inc was in direct violation of the Settlement Order, that Lifelock Inc’s revenues were earned through violations of the FTC Act and the Settlement Order, and that as a result of the above, Lifelock Inc's financial statements were materially false and misleading at all relevant times.
Lifelock Inc reported that its annual Total Revenue rose from $162.28 million in 2010 to $369.66 million in 2013 and that its Net Loss of $15.38 million in 2010 turned into a Net Income of $52.45 million in 2013. Shares of Lifelock Inc (NYSE:LOCK) grew from $7.02 per share in October 2012 to as high $22.717 per share on February 19, 2014.
Then the company announced in a Securities and Exchange Commission filing, that the Federal Trade Commission (“FTC”) has started an investigation into the company's advertising and marketing practices in connection with Lifelock's alleged misrepresentations in the advertising and marketing of its identity theft protection services. The company had previously entered into a stipulated order with the FTC over its deceptive marketing practices, and the current investigation involves new allegations by a whistleblower.
Shares of Lifelock Inc (NYSE:LOCK) declined from $22.62 per share on February 13, 2014, to as low as $15.03 per share on April 15, 2014. On April 28, 2014, NYSE:LOCK shares closed at $15.11 per share.
Those who purchased shares of Lifelock Inc (NYSE:LOCK) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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