Published:
N.J. Class Action Lawsuit Filed Against LifeLock Alleging Deceptive Marketing Regarding Limited Level of Protection Against Identity Theft
NEW BRUNSWICK, N.J., March 31 /PRNewswire/ -- A class action lawsuit was
filed on Friday, March 28 against LifeLock, Inc. and its CEO Richard "Todd"
Davis by Dr. Warren Pasternack and his wife, Susan Pasternack, on behalf of
themselves as well as all other New Jersey LifeLock subscribers. The
Pasternacks allege that LifeLock misled them about the limited level of
identity protection the company provides, and failed to warn them about the
potential adverse impact those services could have on their credit profiles.
The plaintiffs, who reside in Middlesex County, filed suit in the New
Jersey Superior Court inNew Brunswick, claiming that they were the victims of
Consumer Fraud by virtue of LifeLock's deceptive advertisements. The suit
seeks to recover the money subscribers have paid to LifeLock and prohibit the
company from continuing to promote its services through its marketing
campaign.
LifeLock, which is headquartered in Tempe, Ariz., charges subscribers
$10 per month for the services it provides as "the industry leader in the
rapidly growing field of Identity Theft Protection." In fact, in its
ubiquitous marketing campaign, Davis broadcasts his own social security number
on television and radio stations across the country as testimony to his
confidence in the services LifeLock claims to provide.
According to the Complaint, however, LifeLock's popular advertisements
lull its subscribers into a false sense of security by misrepresenting the
level the protection its services provide. To illustrate this point, the
Complaint states that as a result of LifeLock's popular advertisements, CEO
Davis's identity "was stolen while he was a customer and is, upon information
and belief, presently being misappropriated by at least twenty identity
thieves."
David Paris of Marks & Klein, LLP, Red Bank, N.J., the attorney for the
Pasternacks and the proposed class, maintains that LifeLock dramatically
overstates the level of protection provided by its primary service -- the
placement and constant renewal of fraud alerts on its subscribers' credit
profiles.
"While fraud alerts may be effective in limited instances, they certainly
cannot provide the comprehensive identity protection that LifeLock deceptively
advertises," saidParis. "For instance, fraud alerts cannot stop the use of
existing account numbers, and contrary to LifeLock's advertisements, lenders
are certainly not required to contact the subscriber before extending credit
to a potential identity thief."
According to the Complaint, LifeLock also misleads subscribers by
advertising its $1 million service guarantee. "Potential LifeLock subscribers
are enticed by the 'safety net' of what appears to be a one-million dollar
insurance policy against any losses sustained as a result of identity theft,"
saidParis. "In actuality, once you get beyond the limitations and
disclaimers, you find that the guarantee is limited to fixing failures in
LifeLock's services and paying third-parties to attempt to restore subscriber
losses."
Paris added that Marks & Klein plans to file similar actions in New York,
Florida, and California for violations of those states' Consumer Protection
Laws. LifeLock, which was founded in 2005, presently has approximately 900,000
subscribers across theUnited States.
SOURCE Marks & Klein, LLP
Copyright © 2008, PRNewswire
Copyright © 2008, NewsBlaze,
Daily NewsTags: Computers and Electronics, Banking and Finance, High Tech, , Legal, Law and Lawyers, new jersey, arizona
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