A lawsuit was filed for investors in Lifelock Inc (NYSE:LOCK) shares over alleged breaches of fiduciary duty by certain directors and NYSE:LOCK stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 04/26/2016 -- A shareholder of Lifelock Inc (NYSE:LOCK) filed a lawsuit against directors over alleged breaches of fiduciary duties.
Investors who are current long term investors in Lifelock Inc (NYSE:LOCK) shares, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call 858-779-1554.
The plaintiff claims that by renewing a fraud alert every 90 days on behalf of a customer LifeLock Inc in effect floods the credit bureaus with millions of requests for fraud alerts to their databases, degrading the value and meaning of those alerts, becoming less meaningful to credit grantors, and diminishing the alerts' effectiveness. The plaintiff also alleges that Lifelock Inc fails to notify customers when suspicious activity has occurred and sometimes stops sending alerts altogether to reduce call volume received by its customer support center.
The plaintiff says that LifeLock CEO Richard Todd Davis, who became famous for advertising his own social security number on television and billboard ads to demonstrate the effectiveness of LifeLock's services, had his identity stolen over 10 times since the ads started rolling in 2007.
In 2010 Lifelock Inc entered into a settlement order with the Federal Trade Commission ("FTC") and purportedly changed its marketing and business practices in connection with this settlement. In July 2015, the FTC alleged that Lifelock Inc had been violating the terms of the 2010 settlement. In October 2015, Lifelock Inc and the FTC reached another deal, whereby Lifelock Inc agreed to pay $116 million in penalties and costs.
The plaintiff says that Lifelock's board and senior executives knew or should have known that the company's continued conduct could subject it and its stockholders to severe consequences, including fines and penalties, as well as untold legal fees that the company would have to spend to defend itself from accusations of wrongdoing.
On April 22, 2016, NYSE:LOCK shares closed at $12.94 per share.
Those who purchased shares of Lifelock Inc (NYSE:LOCK) have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com