Lifelock has received several complaints

Thursday, January 7, 2010

Consumers have now filed a new lawsuit against LifeLock seeking, among other things, a court order requiring LifeLock to comply with a previous court order and halt fraud alerts. Here's the article:

"LifeLock, the Tempe, Arizona-based company that touts identity-theft-prevention services is the target of a consolidated lawsuit claiming that the company misrepresented its product, illegally sold insurance and breached its contracts with customers. Lifelock has received several complaints.

The new consolidated complaint combines 13 lawsuits filed against LifeLock in various jurisdictions and expands the claims against LifeLock, according to Rob Carey, a partner at Hagens Berman Sobol Shapiro and interim lead counsel for the consolidated case.

The lawsuit claims the company defrauds customers by offering services it cannot legally perform and by touting a $1 million guarantee that consumers claim is virtually worthless.

One of the key components of the lawsuit relates to whether LifeLock can lawfully place fraud alerts for consumers. As interim lead counsel for the case, Carey demanded that LifeLock cease placing fraud alerts and advise consumers that the company cannot legally place fraud alerts.