LifeLock 2015 Annual Report Download - page 291

Case 3:15-cv-00258-HSG Document 49-1 Filed 11/04/15 Page 133 of 289
web first left its subscribers’ personally identifiable information entirely unencrypted and second was arguably illegal.
112. LifeLock’s fourth contractual promise is that it provides a monitoring service that banks and credit card companies cannot provide. Subscribers
rely on this promise and pay LifeLock to provide a superior service than their banks or credit card companies. As discussed above, LifeLock’s lack of
technology, personnel, and expertise has made it impossible for them to deliver even a substandard level of care in credit monitoring, let alone provide a
service superior to that provided by banks and credit card companies for free.
113. Finally, LifeLock’s fifth contractual obligation is that it will use statistical analyses on rising trends in identity theft to better protect its
subscribers. Subscribers rely on this promise by trusting that LifeLock will stay up-to-date and adjust its monitoring accordingly. Data over the past three
years has clearly shown that the incidence of new account fraud accounts for the clear minority of fraud, and instead that the vast majority of fraud is related
to existing accounts. And yet, LifeLock fails to provide for this exact type of identity theft – if someone steals your credit card number and uses it to make
purchases, LifeLock won’t help you.
114. In sum, LifeLock fails to deliver on any of the above contractual obligations it promises to provide. And in exchange, up to 3 million
subscribers pay LifeLock up to $30.00 a month, believing they are protected when in fact they are getting nothing in return.
FACTUAL ALLEGATIONS SPECIFIC TO NAMED PLAINTIFFS
115. Plaintiff Napoleon Ebarle has been a member of LifeLock since at least 2012. In addition, Plaintiff Napoleon Ebarle enrolled his wife and two
minor children. Since his enrollment and based on LifeLock’s representations and promises, Plaintiff Napoleon Ebarle has paid LifeLock a fee of
approximately $40 a month for LifeLock’s services.
116. Based on LifeLock’s advertisements and representations, as identified herein, Plaintiff Napoleon Ebarle understood and/or had the impression
that LifeLock would protect against any attempt to steal his identity or fraudulently procure credit under his name, would contact him in the event his
personal data was used, and send him “up-to-the-minute” alerts. In
1279432.1 - 27 - AMENDED CLASS ACTION COMPLAINT
CASE NO. 3:15-CV-258