West Virginia Class Action Lawsuit Filed Against LifeLock Alleging Deceptive Marketing Practices

This latest action followed suits filed by the firm in April on behalf of Dr. and Mrs. Gerald Falke ofHagerstown, Md., as well as all other LifeLock subscribers inMaryland; and in March on behalf of Dr. and Mrs. Warren Pasternack ofEast Brunswick, N.J., as well as all other New Jersey LifeLock subscribers.

The lawsuits allege that LifeLock and its multi-million-dollar advertising campaign provided false and misleading information about the limited level of identity protection the company provides, and failed to warn them about the potential adverse impact the company's services could have on their credit profiles. The complaints also allege that the CEO has himself been a victim of identity theft by multiple offenders while a customer of LifeLock's services.

David Paris, an attorney with Marks & Klein, LLP and lead counsel in the New Jersey,Maryland andWest Virginia class actions, 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.

"Customers of LifeLock rely on the company's misleading advertisements and pay for a perceived level of protection that is clearly not provided," said Paris.

LifeLock, which is headquartered inTempe, Ariz., charges subscribers $10 per month. According to the Complaints, potential LifeLock subscribers are enticed by the 'safety net' of what appears to be a $1 million insurance policy against any losses sustained as a result of identity theft.

"In actuality, once you get beyond the numerous legal limitations and disclaimers, the policy really only guarantees that LifeLock will investigate how to fix its failure if an incident occurs and will pay other third-party organizations to attempt to restore the subscriber's identity," noted David Grubb of the Grubb Law Group inCharleston, the local counsel for Gerhold and the putativeWest Virginia class. "The subscriber receives no monetary recompense and no guarantee that their reputation and credit status will be restored."

According to the Complaints, LifeLock induces consumers into subscribing through a marketing campaign that showcases CEO Davis broadcasting his own social security number as testimony to his confidence in Lifelock's services. As a result, the Complaints note, Davis's identity has been "stolen while he was a customer and is, upon information and belief, presently being misappropriated by at least twenty identity thieves."

TheWest Virginia action seeks to recover the money subscribers have paid to LifeLock and to prohibit the company from continuing to promote its services through a deceptive marketing campaign. Marks & Klein plans to file similar actions on behalf of consumers in other states. Founded in 2005, LifeLock presently has approximately 1 million subscribers acrossthe United States.

Beyond the charges leveled in the Complaints, lead counsel Paris related the story of aWisconsin consumer who contacted the firm regarding her accidental experience with LifeLock. "Her debit card was stolen and the thief had the audacity to use the card to buy a subscription to LifeLock," he noted. "Most disturbingly, LifeLock issued the subscription to the thief in the thief's name, clearly failing to verify the appropriate information."

LifeLock customers seeking information about or participating in the class action should contact: David Paris at Marks & Klein, (732)-747-7100. Customers inMaryland should contact Spencer Hecht at Hecht & Associates, (301) 587-2099; while West Virginia LifeLock customers should contact David Grubb at The Grubb Law Group, (304) 345-3356.

SOURCE Marks & Klein; The Grubb Law Group

Copyright © 2009, PRNewswire
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Copyright © 2009, NewsBlaze, Daily News

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