Lifelock Settles With 35 States Over Unjustified Claims

03.10.10 | FL News Team

LifeLock, which advertises itself as a subscription service that prevents identity theft has settled a lawsuit filed by the attorney generals of 35 states. The suit accused LifeLock of "misrepresenting and overstating" the identity-theft protection services it offered. The company has now agreed to pay eleven-million dollars in restitution to subscribers and one-million dollars to cover costs of investigations by the states.

 In announcing the settlement, California Attorney General Jerry Brown said the Tempe, Arizona based company had sold "a false sense of security against identity theft with advertisements that were chock-full of inflated claims and promises." In addition to the financial penalties, the settlement prevents the company from overstating services in the future.