LifeLock 2015 Annual Report Download - page 282

Case 3:15-cv-00258-HSG Document 49-1 Filed 11/04/15 Page 124 of 289
notification services are substantially diminished because of the Company’s practice of “throttling” alerts; and that Defendant’s monitoring services were not
equipped to handle and protect a customer’s personal information as represented by LifeLock. Consequently, LifeLock’s promise to “stop thieves before they
do damage” is a falsehood.
D. LifeLock Promises Protection That It Purports Other Banks and Credit Card Companies Cannot Provide
70. In 2008, Experian Information Solutions, Inc. (“Experian”), a credit reporting agency, filed suit against LifeLock alleging that LifeLock’s
practice of placing and renewing “fraud alerts” under consumers’ names violated the federal Fair Credit Reporting Act (“FCRA”) because the statutory
language excludes corporations such as LifeLock from placing “fraud alerts”. According to court documents, LifeLock called Experian’s fraud hotline up to
15,000 times a day to request “fraud alerts.”
71. In an order granting partial Summary Judgment in favor of Experian, the Honorable Andrew J. Guilford agreed with Experian, finding that under
the language of the statute and its legislative history, “the FCRA embodies an established public policy against companies like LifeLock placing fraud alerts
on behalf of consumers.” See Experian Information Solutions, Inc. v. LifeLock Inc. (Case No. SACV08-00165 AG), Order Granting Motion for Partial
Summary Judgment, attached hereto as Ex. 1. Accordingly, the very premise of LifeLock’s promised protections, i.e. the Company setting fraud alerts on
behalf of its consumers, was declared unlawful.
72. Despite the court’s ruling in Experian, LifeLock’s business model and services have remained substantially unchanged since 2005. See
http://consumerproductadvisor.com/lifelock-review/. Indeed, on the website www.lifelockblog.com/why-lifelock/, which upon information and belief is
owned by LifeLock, has a 2015 copyright and was last visited by Plaintiffs’ counsel on January 14, 2015, LifeLock continues to represent that “LifeLock will
request on your behalf that fraud alerts be placed on your accounts – By doing these, creditors will use extra care to identify who you are to investigate the
validity of any transaction.”
1279432.1 - 18 - AMENDED CLASS ACTION COMPLAINT
CASE NO. 3:15-CV-258