LifeLock 2015 Annual Report Download - page 276

Case 3:15-cv-00258-HSG Document 49-1 Filed 11/04/15 Page 118 of 289
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With our patented LifeLock Identity Alert system, as soon as we detect a threat to your identity, you’ll be notified by text, phone, or email, to help
stop thieves before they do damage. So while you’re out there connecting to the world, we’ll be here helping to keep your personal information safe.
(emphasis added)
45. Defendant represents that it provides continuous “alert” services, maintaining that its team works 24 hours a-day, 7 days a week, 365 days a year.
Specifically, Defendant touts:

Our award-winning Member Services agents are on the job every minute of every day, including holidays. Call or contact us online whenever you
need help or have questions. If you do become a victim, our Certified Resolution Specialists know exactly what to [do]. That’s why millions trust
LifeLock with their identity theft protection.
46. However, LifeLock’s representations falsely and/or misleadingly conveyed the scope and effectiveness of its “alert” services. Indeed, in a
complaint filed on July 8, 2013 for wrongful termination (see Burke v. LifeLock, Inc., No. 13-CV-1355 (D. Ariz.)), insider Stephen P. Burke (“Burke”), a
Senior Financial Analyst with LifeLock from February 1, 2010 to March 2013, revealed that during the period of his employment, LifeLock
had and continues to have widespread system problems in processing [ ] alerts and sending them out to the customers as promised in its national
marketing campaigns. The problem of timely informing customers that their credit information was accessed is so widespread that Defendant
instituted a code freeze. In essence, Defendant is deliberately ‘stepping on the brakes’ with regard to sending this critical information to customers
on a timely basis, and worse, often choosing not to send these alerts out at all. This practice has been referred to as “throttling.”
See Ex. 2: Burke Compl., ¶ 13.
47. Burke further revealed that he “first learned of an issue with LifeLock’s alert notification services to customers through an e-mail chain
forwarded to him in late November 2012 by John Lenstrohm (“Lenstrohm”), [LifeLock’s] Director, Direct Response. Id. at ¶ 15.
48. Burke further recounted that he reported the problems of delayed alerts, diminished alert notification service, and “throttling” of alerts with the
following LifeLock officers and employees, among others: Lenstrohm, Director, Direct Response; Erick Dickens,
1279432.1 - 12 - AMENDED CLASS ACTION COMPLAINT
CASE NO. 3:15-CV-258