LifeLock 2015 Annual Report Download - page 283

Case 3:15-cv-00258-HSG Document 49-1 Filed 11/04/15 Page 125 of 289
73. On this same website, LifeLock further represents that “If a child has a credit report, LifeLock will request that fraud alerts be placed on the
child’s accounts.” See www.lifelockblog.com/why-lifelock/.
74. However, at no time does LifeLock inform consumers that under the statutory language of the FCRA, only an individual is allowed to place a
“fraud alert,” either for themselves, or acting on behalf of or as a personal representative to another individual.
75. Likewise, LifeLock fails to inform consumers that a federal court has previously ruled that placement of fraud alerts by LifeLock with any credit
reporting agency violates public policy.
76. As set forth above in ¶27the FTC Order enjoins LifeLock from misrepresenting, expressly or by implication, “the means, methods, procedures,
effects, effectiveness, coverage, or scope” of LifeLock’s services. Thus, LifeLock had an ongoing duty throughout the Class Period to provide accurate and
non-misleading information with regard to “the means, methods, procedures, effects, effectiveness, coverage, or scope” of its services. Notwithstanding this
duty, throughout the Class Period, Defendant made, and continues to make, material misrepresentations and omissions.
77. Moreover, as set forth above, LifeLock’s technology and personnel were deficient and incapable of protecting the security, confidentiality, and
integrity of personal information collected from or about consumers as promised. Thus, in reality, LifeLock provides an inferior service to that offered by
other banks and credit card companies for free.
78. Notably, at around the same time Peters filed his wrongful termination suit against LifeLock in federal court, Peters filed a whistleblower
complaint with the FTC. As a result, in or about August 2013, the FTC opened an investigation into LifeLock’s current policies, procedures, and practices.
Upon information and belief, the FTC investigation remains ongoing.
79. Thus, Defendant’s representations that LifeLock offers protection that other banks and credit companies can’t are misleading, at best.
1279432.1 - 19 - AMENDED CLASS ACTION COMPLAINT
CASE NO. 3:15-CV-258