LifeLock settles multi-million dollar lawsuit

March 9, 2010 (WPVI) -- LifeLock has settled a $12 million lawsuit which accused it of misleading customers.

Back in December, the CEO of LifeLock talked to Action News about his company's alleged ability to offer customers complete identity theft protection and constant credit monitoring.

But in a lawsuit, Attorneys General in 35 states alleged Todd Davis inflated his promises and made confusing statements about a so-called million-dollar guarantee.

The settlement announced Tuesday includes an $11 million national fund for consumer relief.

"All eligible LifeLock customers will be contacted by the Attorney General and the Federal Trade Commission with instructions on how to file a claim," explained Pennsylvania Attorney General Tom Corbett.

He also pointed out consumers can take steps to prevent identity theft on their own.

"The best thing most people can do is closely check their monthly credit card bills and bank statements and regularly review their credit reports. Something they can do for free."

Meantime, LifeLock says:
"LifeLock is pleased with this agreement, which works to set advertising standards for the entire identity theft protection industry... The FTC has ensured that LifeLock has a legitimate business model going forward with honest advertising."

For more information:
http://www.attorneygeneral.gov/idtheft.aspx?id=1757
https://www.annualcreditreport.com/cra/index.jsp

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identity theft, lawsuit, tom corbett, consumer news, nydia han

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